The US Department of Justice launched an investigation into DRAM price fixing in 2002, concerned by dramatic price rises in the market that took place in 2001.
The investigation, which is ongoing, targeted DRAM makers Micron Technology, Samsung, Hynix Semiconductor, Nanya Technologies and Infineon.
Infineon is the first company to admit wrongdoing and, in a deal agreed with the antitrust division of the US Justice Department, pled guilty yesterday to a single and limited charge related to a violation of US Sherman Act in connection with the pricing in its DRAM chip business between 1st July 1999 and 15th June 2002.
The Sherman Act carries a maximum fine of $10 million for corporations and a maximum penalty of three years imprisonment and a $350,000 fine for individuals for violations occurring before 22nd June 2004. However, this maximum fine may be increased to twice the gain the conspirators derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
According to the charge filed yesterday, Infineon conspired with unnamed DRAM manufacturers to fix the prices of DRAM sold to certain computer and server manufacturers, including Dell, HP, IBM and Apple.
Under the plea agreement, which awaits approval by the court, Infineon has agreed to cooperate with the government in its ongoing investigation of other DRAM producers.
"This case sends the message that high-tech price-fixing cartels will not be tolerated – a message reinforced by the largest criminal fine levied in a Department of Justice case in the past three years," said Attorney General John Ashcroft.
In a statement yesterday, Infineon confirmed that it was already in settlement discussions with customers affected by the price fixing.
"Infineon strongly condemns any attempt to fix or stabilise prices," the company said. "Infineon is committed to vigorous and fair competition based solely on superior products and services."
The Department of Justice investigation is ongoing, as is a similar price fixing probe by EU competition regulators.