China claims massive evidence of price fixing in DRAM market

Posted on Wednesday, November 21 2018 @ 10:32 CET by Thomas De Maesschalck
China claims it's ongoing investigation into Samsung, SK Hynix, and Micron has dug up "massive evidence" for price fixing in the memory chip market. Combined, these three companies control 90 percent of the global DRAM market. The country is also one of the largest consumers of DRAM, half of Micron's revenue, about 40 percent of Samsung's chip sales and a third of SK Hynix's sales came from China in 2017.

DRAM and NAND are two markets China is trying to get into:
This being China, there are multiple background layers to the story. Firstly, China wants to be independent and self-sufficient in memory and NAND chip supply and has a multi-year, state-backed and subsidised initiative to make that happen.

Business like the Tsinghua Unigroup, Fujian Jinhua and Yangtze Memory Technology are involved in this. Tsinghua tried to buy Micron three years ago but was rebuffed. Yangtze Memory Technology is in the 3D NAND business. Fujian Jinhua is a DRAM foundry startup.
Meanwhile, Micron is suing UMC for stealing some of its IP for Fujian Jinhua, and the US government filed charges against UMC and Fujian Jinhua on that matter.

Via: The Register

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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