More DRAM vendors involved in US DOJ's probe

The antitrust probe launched by the U.S. Department of Justice (DOJ) into the DRAM (dynamic RAM) market appears to be larger than originally suspected, as additional memory chip makers confirmed that the agency has contacted them as part of the investigation.

The DOJ will not disclose the nature of the investigation, but observers speculate that volatile pricing changes in the memory market and the unison with which players adjust prices has raised the question of collusion. Although it's hard to imagine fierce competitors such as Micron Technology Inc., Samsung Electronics Co. Ltd., Hynix Semiconductor Inc. and Infineon Technologies AG acting together, some believe the companies are illegally cooperating in order to salvage profits in this cut-throat business. Together, the companies hold approximately 75 percent of the DRAM market.

A spokesman for the U.S. office of German DRAM maker Infineon confirmed Thursday that the company received a subpoena from the U.S. District Court for the Northern District of California and intends to cooperate fully with the investigation. A pair of Taiwanese companies, Nanya Technology Corp. and Winbond Electronics Corp., have also been served with subpoenas, according to news reports, as well as Japanese manufacturer Elpida Memory Inc., a joint venture between NEC Corp. and Hitachi Ltd.

These companies join Micron, in Boise, Idaho, and the U.S. division of Korean DRAM maker Hynix, which both confirmed they have been served with subpoenas. Samsung, the world's largest memory chip maker, also reportedly is involved. Calls to the company's U.S. headquarters went unreturned. A spokeswoman at the DOJ confirmed on Wednesday that the antitrust division is conducting an industrywide investigation, but she declined to comment further.

Speculation is swirling that the DOJ is looking into collusion on memory chip pricing, which industry participants have suspected for some time. At an industry conference in April, Dell Computer Corp.'s chairman and chief executive officer, Michael Dell, commented that memory makers must be benefiting from the recent rise in prices. These companies supply DRAM to PC makers for use as main memory in desktop and notebook computers.

"There was some cartel-like behavior by a number of DRAM suppliers," Dell said at the conference. "There was an assumption by some of the companies that they could have both an incredible increase in the price of DRAM and (increased) demand at the same time. The world just doesn't work that way."

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