In 2002, the United States Department of Justice, under the Sherman Antitrust Act, began a probe into the activities of

dynamic random-access memory Dynamic random-access memory (dynamic RAM or DRAM) is a type of random-access semiconductor memory that stores each bit of data in a memory cell, usually consisting of a tiny capacitor and a transistor, both typically based on metal-oxide ...

(DRAM) manufacturers in response to claims by US computer makers, including

Dell Dell is an American based technology company. It develops, sells, repairs, and supports computers and related products and services. Dell is owned by its parent company, Dell Technologies. Dell sells personal computers (PCs), servers, data ...

and Gateway, that inflated DRAM pricing was causing lost profits and hindering their effectiveness in the marketplace. To date, five manufacturers have pleaded guilty to their involvement in an international price-fixing conspiracy between July 1, 1998, and June 15, 2002, including Hynix, Infineon,

Micron Technology Micron Technology, Inc. is an American producer of computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives. It is headquartered in Boise, Idaho. Its consumer products, including ...

, Samsung, and Elpida.

2002-2005

"In December 2003, the Department charged

Alfred P. Censullo Alfred may refer to: Arts and entertainment *''Alfred J. Kwak'', Dutch-German-Japanese anime television series * ''Alfred'' (Arne opera), a 1740 masque by Thomas Arne * ''Alfred'' (Dvořák), an 1870 opera by Antonín Dvořák *"Alfred (Interlu ...

, a Regional Sales Manager for

Inc., with obstruction of justice in violation of 18 U.S.C. § 1503. Censullo pleaded guilty to the charge and admitted to having withheld and altered documents responsive to a grand jury subpoena served on Micron in June 2002." On 20 October 2004, Infineon also pleaded guilty. The company was fined US$160M for its involvement, then the third largest

antitrust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...

fine in US history. In April 2005,

Hynix Semiconductor SK hynix Inc. is a South Korean supplier of dynamic random-access memory (DRAM) chips and flash memory chips. Hynix is the world's second-largest memory chipmaker (after Samsung Electronics) and the world's third-largest semiconductor company. ...

was fined US$185M after they also admitted guilt. In October 2005, Samsung entered a guilty plea in connection with the cartel. On 5 April 2006, Sun Woo Lee, Senior Manager of DRAM at Samsung Electronics, entered into a plea bargain with the US Government for his involvement in the price fixing conspiracy. Following the plea agreement he was sentenced to 8 months in prison and fined US$250,000. Lee was subsequently promoted to President of Samsung Germany in 2009, and then President of Samsung Europe in 2014. On 19 May, 2010, European antitrust regulators also fined nine semiconductor manufacturers more than €331 million for the cartel that operated back in 2002. The companies fined are Samsung Electronics, Infineon, Hynix Semiconductor, Elpida Memory, NEC Electronics, Hitachi, Toshiba, Mitsubishi Electric and Nanya Technology. Micron Technology received immunity for blowing the whistle on the cartel and will not be fined for its involvement.

2017-2018

On 27 April 2018, Hagens Berman filed a class-action lawsuit against Samsung, Hynix, and Micron in U.S. District Court alleging the trio engaged in DRAM price fixing causing prices to skyrocket through 2016 and 2017. Between June 2016 and January 2018, the price of DRAM nearly tripled.

References

External links

Four Infineon Technologies Executives Agree to Plead Guilty in International DRAM Price-Fixing Conspiracy

Anti-competitive practices Cartels Price fixing convictions {{Computer-stub