Chip manufacturers Samsung, SK Hynix, and Micron are facing accusations of price fixing and supply manipulation in a US class action lawsuit. Filed on June 25th in the United States District Court for the Northern District of California, the suit, known as Garciaguirre et al v. Samsung Electronics Co., Ltd. et al, alleges that the trio coordinated their market strategies to worsen the current memory crisis. The plaintiffs are represented by the law firm Bathaee Dunne LLP, which specializes in antitrust litigation.
The core of the lawsuit claims that these memory oligopolists have simultaneously reduced production of conventional DRAM, shifted focus to High Bandwidth Memory (HBM) for AI data centers, and subsequently decreased overall supply of consumer-grade RAM. According to the initial filing, this coordinated action has led to significant and rapid price increases for conventional DRAM since 2022. The plaintiffs contend that in a competitive market, such price surges would typically prompt at least one producer to increase output, a scenario that did not occur.
The lawsuit further alleges that the companies not only directed resources towards the less profitable-per-die HBM but, in some instances, abandoned conventional DRAM supply channels entirely. The plaintiffs argue that Samsung, SK Hynix, and Micron have acted as a monolithic entity rather than independent competitors.
The suit also addresses the barrier to entry for new competitors, noting that the substantial costs and specialized knowledge required for DRAM manufacturing make it difficult for new players to emerge and challenge the established trio. This alleged coordination is not unprecedented; Samsung and SK Hynix, along with other companies, were previously fined for DRAM price fixing between 1998 and 2002. Micron avoided a fine in that instance by reporting the cartel's activities to competition authorities.
This legal action comes in the wake of recent comments from Lenovo suggesting that the current high prices for consumer RAM may become the new standard. The outcome of this lawsuit could potentially influence whether the cost of essential components like RAM for consumer technology returns to more accessible levels.