Linton Crystal Technologies, a US subsidiary of China’s Dalian Linton, has filed a patent infringement lawsuit against Zhejiang Jingsheng in the US District Court for the Eastern District of Texas. The dispute centers on two patents related to crystal growth technology used in furnaces that produce monocrystalline silicon ingots.

The legal action follows reports that Zhejiang Jingsheng secured a contract worth approximately ¥3 billion, or $420 million, to supply crystal pullers for Tesla’s planned solar factory in Texas. Tesla aims to reach 100 GW of solar manufacturing capacity by the end of 2028.

Zhejiang Jingsheng, which is valued at about ¥53 billion, stated that its equipment utilizes different technical solutions and expects no material impact on its operations. The company noted that it has not been formally served with the lawsuit as of late September 2026.

Tesla’s broader solar expansion, dubbed Project Crystal Sun, involves a planned $10.1 billion facility in Fort Bend County with production slated for early 2029. The project relies on equipment procurement from Chinese manufacturers, including pullers, wafer cutters, and quartz crucibles.

Both suppliers have faced financial pressure, with Zhejiang Jingsheng reporting a 40% year-over-year revenue decline in the first half of 2026, while Dalian Linton recorded a loss during the same period. The lawsuit is viewed by industry experts as a potential attempt to gain leverage.