With prices currently high in the memory sector, some are beginning to lose patience and are filing complaints in the United States. The three largest memory manufacturers—SK Hynix, Samsung Electronics, and Micron—are the targets. The reason? They are accused of deliberately causing this shortage in order to drive up prices. This theory holds some merit, especially since the current situation is allowing these companies to post strong financial results. However, one cannot deny the efforts these companies have made to increase their production.
Micron, SK Hynix, and Samsung are the targets of a class-action lawsuit in the United States!
Accused of price-fixing!
Broadly speaking, the class-action lawsuit accuses the three major manufacturers of having “orchestrated” the current shortage by artificially limiting the supply of memory, which has led to a massive increase in memory prices. As a knock-on effect, products using this memory are also seeing their retail prices rise. This is what we’ve been seeing for the past few months: electronics prices are skyrocketing!
In any case, a complaint has been filed, and the plaintiffs are none other than individuals and companies. All of this is filed under case number 3:26-cv-06345 and would fall under U.S. antitrust laws. Obviously, the plaintiffs are seeking financial compensation.
Already Accused of Price Fixing?
However, it’s important to note that this isn’t the first time these companies have been accused of price-fixing. In fact, in 2005, the U.S. Department of Justice fined Samsung $300 million for price-fixing practices. But that case also involved other companies such as Micron, Hynix (now SK Hynix), Elpida, and Infineon. This price-fixing scheme notably affected assemblers and OEMs such as Dell, Compaq, IBM, HP, Gateway, and even Apple.
A Different Situation?
However, unlike in 2005, the situation is quite different today, as we are dealing with an emerging market driven by artificial intelligence. This market is absorbing a huge portion of the production capacity of SK Hynix, Samsung, and Micron.
Furthermore, it cannot be said that these companies are acting in bad faith, as they are making investments to increase production capacity. SK Hynix is building a new factory while focusing on DDR5, which currently offers more profitable margins. For its part, Micron is building a factory in New York State, so given these factors, it’s doubtful that there’s any collusion…