Samsung, SK Hynix, Micron Sued for DRAM Price-Fixing

Samsung Electronics, SK Hynix, and Micron Technology, the three dominant memory suppliers, are facing a class-action lawsuit in a U.S. federal court in California. The lawsuit, filed by individual consumers and businesses, alleges that these companies conspired to fix DRAM prices and restrict global supply, causing prices to surge by approximately 700% over four years. The plaintiffs claim the companies simultaneously cut production of older DDR3 and DDR4 modules and coordinated a shift towards High Bandwidth Memory (HBM) for AI data centers, exacerbating an existing memory shortage. This alleged conduct has led to increased prices for various electronic devices from companies like Apple Inc., BBK Electronics — OnePlus, EITC, Microsoft — Xbox, Valve Corporation, and Microsoft. The lawsuit seeks injunctive relief, treble damages, and reimbursement for court costs and attorney fees. This is not the first time these companies have faced such allegations; Samsung Electronics and SK Hynix previously pleaded guilty to DRAM price-fixing between 1998 and 2002, with Micron Technology avoiding penalties by cooperating with prosecutors. The current lawsuit highlights the challenges for new competitors to enter the DRAM market due to high costs and trade secrets, leaving consumers dependent on the 'big three.'