(Yicai) July 8 -- Innoscience Zhuhai Technology, a Chinese maker of semiconductors, has infringed on American rival Efficient Power Conversion's intellectual property involving a novel technology that could replace silicon in chips, according to a preliminary ruling of the United States International Trade Commission.

EPC’s lawsuit, started in May, is coming to an end as the federal agency issued the initial ruling today that confirmed that EPC’s two key patents involving gallium nitride are valid. Innoscience and its American units have violated its foundational patent, it added.

Even the China National Intellectual Property Administration confirmed that EPC’s two patents in China are active despite Innoscience's complaint, Yicai learned.

The copyright issue could affect the Chinese firm's listing as the company filed its prospectus to Hong Kong Exchanges and Clearing last month.

The ITC will issue a final ruling around Nov. 5, which may result in a ban on Innoscience’s related products in the States.

The dispute indicates that the world is increasingly paying attention to gallium nitride, an emerging power conversion technology that could improve the energy efficiency of semiconductors while lowering costs. The global gallium nitride market will grow to billions of US dollars in the next two to three years and peak at tens of billions of dollars in the next decade, experts predicted.

Alex Lidow, co-founder and chief executive of EPC, said: "ITC’s finding that Innoscience uses our patented technology without authorization puts EPC in an enviable position, as U.S. and Chinese regulatory bodies have upheld the validity of our patents."

Founded in December 2015, Innoscience focuses on gallium nitride chips, used in fast charging, wireless charging, data centers, and automotive electronics. It has independently developed such manufacturing and packaging technologies.

Editor: Emmi Laine