A class-action lawsuit filed on June 25 in the United States District Court for the Northern District of California accuses Samsung, Micron, and SK Hynix of forming a monopoly and engaging in "concerted anticompetitive behavior" that has driven up prices for consumer RAM and storage. The suit alleges that the three largest memory manufacturers simultaneously withdrew from producing consumer-grade memory, such as DDR3 and DDR4, to prioritize the high-demand market for High-Bandwidth Memory (HBM) used in AI data centers.
The complaint argues that the immense capital investment and time required to establish new memory manufacturing facilities make it nearly impossible for new competitors to enter the market and challenge the established trio. "No new entrant can discipline [Samsung, SK Hynix, or Micron] in the conventional DRAM market," the lawsuit states, noting that a single modern DRAM fabrication plant can cost between fifteen and twenty billion dollars and takes years to construct. Furthermore, crucial components like extreme ultraviolet lithography machines are sourced from a single supplier with long-standing commitments to existing manufacturers.
This is not the first time these companies have faced accusations of price collusion. In 2005, SK Hynix and Samsung were fined significant amounts after admitting to price-fixing DRAM prices. The current lawsuit suggests similar coordinated actions may have occurred between 2016 and 2018 during a previous price spike, although no legal penalties were issued at that time.
The legal action seeks both damages for consumers and "injunctive relief" to end the alleged collusion. Micron has publicly stated that it "disagrees with the allegations contained in the complaint" and intends to "defend ourselves against these claims," asserting that the company "competes vigorously, fairly and in compliance with all applicable laws."
The impact of these supply constraints has been widespread across the electronics industry, particularly affecting PC and gaming hardware. This has been evident in the rising prices of devices like Valve's Steam Deck and the increased costs for consoles such as the PlayStation 5, Xbox Series X, and Nintendo Switch. Even major technology companies like Apple have had to adjust pricing due to these market conditions. Microsoft has indicated that the trend is unlikely to reverse soon, predicting that console storage and memory prices could double again by the fall of 2027.