DRAM Makers Could be Fined by China In Antitrust Probe
China has reportedly made progress in its antitrust probe into Samsung, SK Hynix and Micron, in an investigation related to the rising DRAM prices caused by shortages.
The Financial Times reported that Wu Zhenguo, the head of China's anti-monopoly bureau, said "the anti-monopoly investigation into these three companies has made important progress" and "yielded massive evidence."
SK Securities analyst Kim Young-woo told the Financial Times that China could impose fines up to $2.5 billion on Samsung, SK Hynix, and Micron as the result of this investigation. That would likely incentivize the companies to work with their Chinese counterparts, he said, rather than competing against them.
China launched the antitrust probe in June, after DRAM prices skyrocketed following global shortages. Currently, it is not clear what the Chinese government plans to do as the investigation moves forward. In any case, the probe is positive for Chinese DRAM companies which compete with their international counterparts.
According to DRAMeXchange, a 5 percent price decline is possible within the year.
Earlier this year, China blocked Micron from selling certain products in its country, and in October, the U.S. Department of Commerce blocked American exports to Fujian Jinhua Integrated Circuit Company.