All Topics  
DRAM price fixing

 

 
   Email Print
   Bookmark   Link
 

 

DRAM price fixing
 
 
  Topics DRAM price fixing Topic Home

In 2002, armed with the Sherman Antitrust Act
Sherman Antitrust Act

Antitrust Act was the first United States Federal statute to limit cartels and monopoly. It falls under antitrust law.The Act provides: "Every contract, combination in the form of Trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal"....
, the United States Department of Justice
United States Department of Justice

The United States Department of Justice is a United States Cabinet department in the United States government of the United States designed to enforce the law and defend the interests of the United States according to the law and to ensure fair and impartial administration of justice for all Americans ....
 began a probe into the activities of dynamic random access memory
Dynamic random access memory

Dynamic random access memory is a type of random access memory that stores each bit of data in a separate capacitor within an integrated circuit....
 (DRAM) manufacturers. US computer makers, including Dell
Dell

Dell, Inc. is a multinational corporation technology corporation that develops, manufactures, sells, and supports personal computers and other computer-related products....
 and Gateway
Gateway, Inc.

Gateway, Incorporated. is a computer hardware company based in Irvine, California, California, which develops, manufactures, supports, and markets a wide range of personal computers, computer monitors, server , and computer accessories....
, claimed 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 including Hynix
Hynix

Hynix Semiconductor Inc. of South Korea is a memory semiconductor supplier of dynamic random access memory chips and flash memory chips. Formerly known as Hyundai Electronics, the company has manufacturing sites in Korea, the U.S., China and Taiwan....
, Infineon, Micron Technology
Micron Technology

Micron Technology is a Multinational corporation based in Boise, Idaho, Idaho, USA, best known for producing many forms of semiconductor devices....
, Samsung, and Elpida
Elpida Memory

is a corporation that develops, designs, manufactures and sells dynamic random access memory products. It is also a Foundry . With headquarters in Yaesu, Chuo, Tokyo, Japan, it was formed under the name NEC Hitachi Memory in 1999 by the merger of the Hitachi, Ltd....
.

"In December 2003, the Department charged Alfred P.






Discussion
Ask a question about 'DRAM price fixing'
Start a new discussion about 'DRAM price fixing'
Answer questions from other users
Full Discussion Forum



Encyclopedia


In 2002, armed with the Sherman Antitrust Act
Sherman Antitrust Act

Antitrust Act was the first United States Federal statute to limit cartels and monopoly. It falls under antitrust law.The Act provides: "Every contract, combination in the form of Trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal"....
, the United States Department of Justice
United States Department of Justice

The United States Department of Justice is a United States Cabinet department in the United States government of the United States designed to enforce the law and defend the interests of the United States according to the law and to ensure fair and impartial administration of justice for all Americans ....
 began a probe into the activities of dynamic random access memory
Dynamic random access memory

Dynamic random access memory is a type of random access memory that stores each bit of data in a separate capacitor within an integrated circuit....
 (DRAM) manufacturers. US computer makers, including Dell
Dell

Dell, Inc. is a multinational corporation technology corporation that develops, manufactures, sells, and supports personal computers and other computer-related products....
 and Gateway
Gateway, Inc.

Gateway, Incorporated. is a computer hardware company based in Irvine, California, California, which develops, manufactures, supports, and markets a wide range of personal computers, computer monitors, server , and computer accessories....
, claimed 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 including Hynix
Hynix

Hynix Semiconductor Inc. of South Korea is a memory semiconductor supplier of dynamic random access memory chips and flash memory chips. Formerly known as Hyundai Electronics, the company has manufacturing sites in Korea, the U.S., China and Taiwan....
, Infineon, Micron Technology
Micron Technology

Micron Technology is a Multinational corporation based in Boise, Idaho, Idaho, USA, best known for producing many forms of semiconductor devices....
, Samsung, and Elpida
Elpida Memory

is a corporation that develops, designs, manufactures and sells dynamic random access memory products. It is also a Foundry . With headquarters in Yaesu, Chuo, Tokyo, Japan, it was formed under the name NEC Hitachi Memory in 1999 by the merger of the Hitachi, Ltd....
.

"In December 2003, the Department charged Alfred P. Censullo, a Regional Sales Manager for Micron Technology
Micron Technology

Micron Technology is a Multinational corporation based in Boise, Idaho, Idaho, USA, best known for producing many forms of semiconductor devices....
 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."

In October of 2004, four executives from Infineon
Infineon Technologies

Infineon Technologies Aktiengesellschaft was founded in April 1999 when the semiconductor operations of parent company, Siemens AG, were spun off to form a separate legal entity....
 were each sentenced to 4 to 6 months in jail, and fined $250,000. After the four were sentenced, Scott D. Hammond, the Director of Criminal Enforcement for the DoJ Antitrust Division, said, "These four executives are the first to plead guilty to a charge of fixing prices in what is still a very active and far-reaching investigation into antitrust violations in the DRAM industry. We will continue in our efforts to bring to justice other domestic and foreign-based executives who were involved with fixing DRAM prices."

On October 20, 2004, Infineon also pled guilty. The company was fined $160M for its involvement, which at the time was the third largest antitrust fine in US history; Hynix Semiconductor
Hynix

Hynix Semiconductor Inc. of South Korea is a memory semiconductor supplier of dynamic random access memory chips and flash memory chips. Formerly known as Hyundai Electronics, the company has manufacturing sites in Korea, the U.S., China and Taiwan....
 soon took the third position in April 2005 with a $185M criminal penalty after they also pleaded guilty. In October 2005, Samsung entered their guilty plea in connection with the cartel. Their $300M fine was the second largest antitrust fine in US history to that date.

See also

  • Price fixing
    Price fixing

    Price fixing is an agreement between business competitors to sell the same product or service at the same price.In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers....
  • Cartel
    Cartel

    A cartel is a formal agreement among firms. It is a formal organization of producers that agree to coordinate prices and production. Cartels usually occur in an Oligopoly, where there is a small number of sellers and usually involve homogeneous products....
  • Antitrust
    Antitrust

    United States antitrust law is the body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are designed to encourage competition in the marketplace....
  • US Department of Justice
  • Sherman Antitrust Act
    Sherman Antitrust Act

    Antitrust Act was the first United States Federal statute to limit cartels and monopoly. It falls under antitrust law.The Act provides: "Every contract, combination in the form of Trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal"....


External links