Chinese authorities claimed that Samsung Electronics Co., SK Hynix Inc. and Micron Technology Inc., the world’s largest DRAM producers, were guilty of fixing their products’ prices.
The Chinese government launched an investigation into the companies' business practices in June this year. The three top corporations control about 95% of the global market of dynamic random access memory chips (DRAM) which are widely used in computers and smartphones.
According to IC Insights, DRAM prices skyrocketed by 47% after the previous longstanding decline during three decades. Its cost kept on rising in 2018 as well, experts noted.
In April of the current year, a lawsuit was filed against these three companies in the US. They were accused of conspiring to drive up prices for DRAM. Companies’ managements denied the charges.
The hike in DRAM prices has affected most of electronics manufacturers, including ones in China which accounted for 40% of Samsung’s semiconductors sales, 33% of SK Hynix’s sales and 51% of Micron Technology’s ones in 2017.
Analysts at SK Securities believe that in case if the price-fixing is proved, each company will be fined over $2.5 billion. The Chinese government may use the ongoing investigation into US-based Macron in trade war with the United States.
