DRAM makers facing up to $8 billion in price fixing fines in China

Samsung, SK Hynix and Micron are facing significant antitrust fines in China. Together, these three companies account for roughly 95 percent of global DRAM supply. China is looking into the pricing of DRAM, as a significant increase in pricing since 2017 put pressure on the profitability of Chinese companies like smartphone makers.

According to China's antitrust law, Samsung, SK Hynix and Micron could be fined between US$800 million and US$8 billion if found to have engaged in price fixing, the sources noted. The estimated fines are based on their DRAM sales to China in 2016-2017.

The three DRAM vendors, along with Infineon and Elpida Memory, were previously fined by the US for price fixing practices between 1999 and 2002. Infineon has already exited the DRAM business, while Elpida was later acquired by Micron.

China is the world's largest DRAM buyer. Last year, the country imported $88.92 billion worth of memory chips, up nearly 40 percent year-over-year. China aims to decrease its dependence on foreign memory chips by creating a homegrown DRAM and NAND flash memory industry.