Samsung, Hynix, Micron face price-fixing probe
SEOUL: China has launched an investigation into South Korea’s Samsung Electronics Co Ltd and SK Hynix Inc as well as United States’ Micron Technology Inc.
A source said China was probing price-fixing allegations as DRAM prices had risen sharply, the first such probe by China.
“The investigation has kicked off in earnest,” said the source.
All three companies confirmed that officials from China’s State Administration for Market Regulation had visited their offices.
A Samsung spokesman said the company was cooperating with the Chinese authorities. A SK Hynix spokesman also declined to give further details.
The three companies are the biggest suppliers of DRAM chips used in smartphones and personal computers to store data.
“China (is) trying to protect their PC and smartphone market from rising DRAM costs.
“Typically, China PC and smart phones sell at lower costs/margins than those in other countries,” said Stifel Nicolaus analyst Kevin Cassidy.
The investigation also comes at a time when China is looking to promote its own chip industry to cut its heavy reliance on imports.
Chinese firms have also had a number of overseas deals to buy foreign chip firms blocked by US regulators in recent years, including a bid by Tsinghua Unigroup to buy Micron Technology.