DRAM price fixing
Encyclopedia
In 2002, the United States Department of Justice
, under the Sherman Antitrust Act
, began a probe into the activities of dynamic random access memory
(DRAM) manufacturers. US computer makers, including Dell
and Gateway
, 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
, Infineon, Micron Technology
, Samsung
, and Elpida
.
"In December 2003, the Department charged Alfred P. Censullo, a Regional Sales Manager for Micron Technology
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 October 20, 2004, Infineon also pled guilty. The company was fined $160M for its involvement, then the third largest antitrust
fine in US history. Hynix Semiconductor
soon took the third position in April 2005 with a $185M criminal penalty after they also admitted guilt. In October 2005, Samsung
entered their guilty plea in connection with the cartel.
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
, under the Sherman Antitrust Act
Sherman Antitrust Act
The Sherman Antitrust Act requires the United States federal government to investigate and pursue trusts, companies, and organizations suspected of violating the Act. It was the first Federal statute to limit cartels and monopolies, and today still forms the basis for most antitrust litigation by...
, 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. The capacitor can be either charged or discharged; these two states are taken to represent the two values of a bit, conventionally called 0 and 1...
(DRAM) manufacturers. US computer makers, including Dell
Dell
Dell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest...
and Gateway
Gateway, Inc.
Gateway Computer Corporation, is a computer hardware company headquartered in Irvine, California, USA which develops, manufactures, supports, and markets a wide range of personal computers, computer monitors, servers, 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. chips and flash memory chips. Founded in 1983, Hynix is the world's second-largest memory chipmaker, the largest being Samsung Electronics. 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, Inc. is an American multinational corporation based in Boise, Idaho, USA, best known for producing many forms of semiconductor devices. This includes DRAM, SDRAM, flash memory, SSD and CMOS image sensing chips. Consumers may be more familiar with its consumer brand Crucial...
, Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
, and Elpida
Elpida Memory
is a corporation established in 1999 that develops, designs, manufactures and sells dynamic random-access memory products. It is also a semiconductor foundry. With headquarters in Yaesu, Chūō, 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, Inc. is an American multinational corporation based in Boise, Idaho, USA, best known for producing many forms of semiconductor devices. This includes DRAM, SDRAM, flash memory, SSD and CMOS image sensing chips. Consumers may be more familiar with its consumer brand Crucial...
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 October 20, 2004, Infineon also pled guilty. The company was fined $160M for its involvement, then the third largest antitrust
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
fine in US history. Hynix Semiconductor
Hynix
Hynix Semiconductor Inc. chips and flash memory chips. Founded in 1983, Hynix is the world's second-largest memory chipmaker, the largest being Samsung Electronics. 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 admitted guilt. In October 2005, Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
entered their guilty plea in connection with the cartel.