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Reprieve for Hynix in chip price case

Sun and Unisys must provide more evidence

Simon Burns, vnunet.com 10 Apr 2007
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Korean memory chip maker, Hynix has won a temporary respite from charges that it conspired to push up prices. A California judge has ruled that Sun and Unisys failed to provide enough information in their case against Hynix, and said they must refile their complaint.

Hynix and Samsung of Korea both paid heavily to settle US semiconductor pricing-related cases two years ago. Hynix paid more than $180m in fines after pleading guilty to fixing memory chip prices.

However, problems have continued for Hynix. Last autumn, a senior vice president was accused of conspiracy to inflate DRAM prices, and Sun and Unisys also filed their pricing complaints.

Sun and Unisys are both major memory chip buyers, and customers of Hynix. Their complaints appear to relate, at least in part, to alleged overpricing during the period for which Hynix has already been fined by US trade authorities.

The companies claimed they were effectively overcharged when they purchased Hynix chips. However, they did not provide details of where the alleged overcharging occurred, acccording to the judge's ruling. The judge has given them 4 weeks to file an amended complaint with the missing information.

The suit also names other memory chip makers, including three from Taiwan, two from Japan, and Germany's Infineon, but it is not clear if the judge has requested additional information regarding these firms' chip sales.

Hynix's troubles stem from a US justice department price-fixing inquiry started in 2002. The investigation led to hundreds of millions of dollars in fines against several memory chip makers, and produced evidence which has been re-visited in later cases.

See also:

1Gb and 2Gb UDIMM modules unveiled  19 Dec 2006
MicroprocessorReport claims chipmaker could nearly double 2005 revenue  07 Dec 2006
Hynix mobile DRam512Mb mobile DDR SDRam processes 1.6GB of data per second  04 Dec 2006
Vendor promises better power supplies and more fuel-efficient cars  13 Sep 2006
The market for Flash memory will be worth more than $17bn next yearForthcoming products from Apple and Microsoft to drive growth  16 Aug 2006
Rambus must choose reduced payment or a retrial  19 Jul 2006
A group of 34 US states has filed a lawsuit against seven makers of DRam memory chips for alleged price fixingDRam 'cartel' keeping prices artificially high, say US states  17 Jul 2006
Memory firm awarded infringement damages of $306.5m  25 Apr 2006

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