Redakcja Choose TV
Rising electronics prices have for months been attributed to increasingly expensive RAM and flash memory used in SSDs. Now the matter has taken on an entirely new dimension. The three largest memory manufacturers in the world have been sued in the United States on charges of illegally fixing prices and restricting production. If the allegations are confirmed, this could be one of the largest antitrust cases in the technology industry in recent years. For now, the companies firmly deny all the charges.
Samsung, SK Hynix and Micron accused of price-fixing
A class action filed in California concerns the companies Samsung, SK Hynix and Micron, which are responsible for the vast majority of global DRAM production and a large part of the NAND Flash market. According to the plaintiffs, the manufacturers jointly restricted production of DDR3 and DDR4 memory while redirecting manufacturing capacity to the more profitable HBM chips used in data centres supporting artificial intelligence. The claimants say this caused a sharp rise in prices for memory used in computers, consoles and many other electronic devices. The complaint even cites price increases of up to 700 per cent over the past four years. The plaintiffs allege the manufacturers violated US antitrust laws by coordinating their actions instead of competing fairly. If the allegations are confirmed, similar conduct could also breach European competition rules. For now the proceedings are at an early stage and no rulings have been made. The case could, however, have huge significance for the entire tech industry.
Manufacturers deny the allegations, but history has seen similar cases
Companies named in the lawsuit deny accusations of price‑fixing. Micron has already officially denied the allegations, while Samsung and SK Hynix say changes in production result from huge demand for memory chips used by the artificial intelligence sector. It is worth recalling, however, that the memory industry has been involved in similar matters before. In 2005 Samsung and SK Hynix admitted to taking part in a price‑fixing cartel involving DRAM and paid fines running into the millions. Some managers were then sentenced to prison terms for coordinating prices between manufacturers. The European Commission also pursued similar proceedings against the largest memory makers, imposing heavy fines. The current case, however, concerns a completely different market situation linked to the rapid development of artificial intelligence and the growing demand for advanced memory chips. The outcome of the trial could affect not only semiconductor manufacturers but also the prices of electronics purchased by millions of consumers around the world.
Samsung, SK Hynix and Micron have been sued in the US on charges of creating a price-fixing cartel in the DRAM and NAND memory markets. The companies deny the allegations, but if they were confirmed they could explain the sharp rise in prices of many electronic devices.
source: flatpanelshd
