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 was the first company to admit wrongdoing and, in
September last year, was fined $160 million.
Hynix has now followed suit, pleading guilty to a felony
charge relating to a violation of US Sherman Act in connection with
the pricing in its DRAM chip business from 1st April 1999 to 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 sum greater
than the statutory maximum.
According to the charge filed yesterday, Hynix conspired with
unnamed DRAM manufacturers to fix the prices of DRAM sold to
certain computer and server manufacturers, including Dell,
Hewlett-Packard,
IBM
and Apple.
Under the plea agreement, which awaits approval by the court,
Hynix has agreed to cooperate with the government in its ongoing
investigation of other DRAM producers.
"Price fixing imperils free markets, impairs innovation, and
harms American consumers," said Attorney General Alberto
R
Gonzales. "This case shows that high-tech
price-fixing cartels will not be tolerated."
The Justice Department is not only targeting the companies
involved in the cartels. In December last year, four Infineon
executives pleaded guilty to the DRAM price-fixing conspiracy and
are now serving jail terms of between four and six months. Each
executive has also paid a fine of $250,000.
