China: there is solid evidence that dram-makers have violated competition rules

Nov

20

2018

China reports that it has ‘very convincing evidence’ that would show that the three largest memory manufacturers, namely Samsung, SK Hynix and Micron, have violated the applicable competition rules. That would have led to high prices.

Wu Zenghou, the head of the Chinese anti-monopoly agency, reports that China has made significant progress in the ongoing investigation into Samsung, SK Hynix and Micron, reports the Financial Times . These companies jointly hold about 95 percent of the market for dram chips. What the proof consists of has not been made known.

China could, for example, have evidence that shows that the companies have made price agreements with each other. Prices for dram increased significantly in 2017, which can also be explained by the high demand, especially for smartphones. Production problems or lagging production increases may also have played a role.

The Chinese research began at the end of last year and a US law firm already started a lawsuit against the three manufacturers, because consumers would have paid too much for dram because of the high prices. The fact is that the prices were relatively high at the end of last year and the beginning of this year; Prices have been falling again since the spring, although they are still far from the spring of 2016.

An analyst states that China, through the addition of the American company Micron, may also use this research as a lever in the trade war between the country and the United States.

dram 16GB price trend
Price trend of a set of Corsair Vengeance dram memory of 2 × 8GB, in the period from the end of 2015 to the present

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