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DRAM price fixing scandal - Wikipedia
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src="//upload.wikimedia.org/wikipedia/commons/thumb/b/b0/256MB_DDR_SO-DIMM.JPG/220px-256MB_DDR_SO-DIMM.JPG" decoding="async" width="220" height="114" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/b/b0/256MB_DDR_SO-DIMM.JPG/330px-256MB_DDR_SO-DIMM.JPG 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/b/b0/256MB_DDR_SO-DIMM.JPG/440px-256MB_DDR_SO-DIMM.JPG 2x" data-file-width="1104" data-file-height="573" /></a><figcaption>DRAM SO-DIMM</figcaption></figure> <p>In 2002, the <a href="/wiki/United_States_Department_of_Justice" title="United States Department of Justice">United States Department of Justice</a>, under the <a href="/wiki/Sherman_Antitrust_Act" title="Sherman Antitrust Act">Sherman Antitrust Act</a>, began a probe into the activities of <a href="/wiki/Dynamic_random-access_memory" title="Dynamic random-access memory">dynamic random-access memory</a> (DRAM) manufacturers in response to claims by US computer makers, including <a href="/wiki/Dell" title="Dell">Dell</a> and <a href="/wiki/Gateway,_Inc." title="Gateway, Inc.">Gateway</a>, that inflated DRAM pricing was causing lost profits and hindering their effectiveness in the marketplace.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> </p><p>To date, five manufacturers have pleaded guilty to their involvement in an international <a href="/wiki/Price-fixing" class="mw-redirect" title="Price-fixing">price-fixing</a> conspiracy between July 1, 1998, and June 15, 2002, including <a href="/wiki/Hynix" class="mw-redirect" title="Hynix">Hynix</a>, <a href="/wiki/Infineon" class="mw-redirect" title="Infineon">Infineon</a>, <a href="/wiki/Micron_Technology" title="Micron Technology">Micron Technology</a>, <a href="/wiki/Samsung" title="Samsung">Samsung</a>, and <a href="/wiki/Elpida_Memory" class="mw-redirect" title="Elpida Memory">Elpida</a>.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="2002–2005"><span id="2002.E2.80.932005"></span>2002–2005</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=DRAM_price_fixing_scandal&action=edit&section=1" title="Edit section: 2002–2005"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>"In December 2003, the Department charged <a href="/w/index.php?title=Alfred_P._Censullo&action=edit&redlink=1" class="new" title="Alfred P. Censullo (page does not exist)">Alfred P. Censullo</a>, a Regional Sales Manager for <a href="/wiki/Micron_Technology" title="Micron Technology">Micron Technology</a> Inc., with obstruction of justice in violation of 18 U.S.C. § 1503. Censullo pleaded guilty to the charge and admitted to having withheld and altered documents responsive to a grand jury subpoena served on Micron in June 2002."<sup class="plainlinks nourlexpansion citation" id="ref_micron"><a class="external autonumber" href="https://en.wikipedia.org/wiki/DRAM_price_fixing_scandal#endnote_micron">[1]</a></sup> </p><p>On 20 October 2004, Infineon also pleaded guilty. The company was fined US$160M for its involvement, then the third largest <a href="/wiki/Antitrust" class="mw-redirect" title="Antitrust">antitrust</a> fine in US history. In April 2005, <a href="/wiki/Hynix" class="mw-redirect" title="Hynix">Hynix Semiconductor</a> was fined US$185M after they also admitted guilt. In October 2005, <a href="/wiki/Samsung" title="Samsung">Samsung</a> entered a guilty plea in connection with the cartel.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> </p><p>On 5 April 2006, <a href="/wiki/Sun_Woo_Lee" title="Sun Woo Lee">Sun Woo Lee</a>, Senior Manager of DRAM at Samsung Electronics, entered into a plea bargain with the US Government for his involvement in the price fixing conspiracy.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> Following the plea agreement he was sentenced to 8 months in prison and fined US$250,000.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> Lee was subsequently promoted to President of Samsung Germany in 2009, and then President of Samsung Europe in 2014. </p><p>On 19 May, 2010, European antitrust regulators also fined nine semiconductor manufacturers more than €331 million for the cartel that operated back in 2002. The companies fined are Samsung Electronics, Infineon, Hynix Semiconductor, Elpida Memory, NEC Electronics, Hitachi, Toshiba, Mitsubishi Electric and Nanya Technology. Micron Technology received immunity for blowing the whistle on the cartel and will not be fined for its involvement. <sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="2017–2018"><span id="2017.E2.80.932018"></span>2017–2018</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=DRAM_price_fixing_scandal&action=edit&section=2" title="Edit section: 2017–2018"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>On 27 April 2018, Hagens Berman filed a class-action lawsuit against Samsung, Hynix, and Micron in U.S. District Court alleging the trio engaged in DRAM price fixing causing prices to skyrocket through 2016 and 2017.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> Between June 2016 and January 2018, the price of DRAM nearly tripled.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=DRAM_price_fixing_scandal&action=edit&section=3" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output 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.id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFGaudin2006" class="citation web cs1">Gaudin, Sharon (2006-12-22). <a rel="nofollow" class="external text" href="https://www.crn.com/news/components-peripherals/196701646/samsung-exec-gets-jail-time-for-role-in-dram-price-fixing-scandal.htm">"Samsung Exec Gets Jail Time For Role In DRAM Price-Fixing Scandal"</a>. <i><a href="/wiki/CRN_(magazine)" title="CRN (magazine)">CRN</a></i>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=CRN&rft.atitle=Samsung+Exec+Gets+Jail+Time+For+Role+In+DRAM+Price-Fixing+Scandal&rft.date=2006-12-22&rft.aulast=Gaudin&rft.aufirst=Sharon&rft_id=https%3A%2F%2Fwww.crn.com%2Fnews%2Fcomponents-peripherals%2F196701646%2Fsamsung-exec-gets-jail-time-for-role-in-dram-price-fixing-scandal.htm&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADRAM+price+fixing+scandal" class="Z3988"></span></span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFGross2004" class="citation web cs1">Gross, Grant (2004-09-15). <a rel="nofollow" class="external text" href="https://www.computerworld.com/article/2566841/infineon-to-pay--160m-fine-for-dram-price-fixing.html">"Infineon to pay $160M fine for DRAM price-fixing"</a>. <i><a href="/wiki/Computerworld" title="Computerworld">Computerworld</a></i>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Computerworld&rft.atitle=Infineon+to+pay+%24160M+fine+for+DRAM+price-fixing&rft.date=2004-09-15&rft.aulast=Gross&rft.aufirst=Grant&rft_id=https%3A%2F%2Fwww.computerworld.com%2Farticle%2F2566841%2Finfineon-to-pay--160m-fine-for-dram-price-fixing.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADRAM+price+fixing+scandal" class="Z3988"></span></span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFSmith" class="citation news cs1">Smith, Tony. <a rel="nofollow" class="external text" href="https://www.theregister.co.uk/2004/02/27/memory_makers_hit_by_pricefixing/">"Memory makers hit by price-fixing claims"</a>. <i><a href="/wiki/The_Register" title="The Register">The Register</a></i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20080725111436/http://www.theregister.co.uk/2004/02/27/memory_makers_hit_by_pricefixing/">Archived</a> from the original on 2008-07-25<span class="reference-accessdate">. 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Cir. 2006), <a rel="nofollow" class="external text" href="https://www.justice.gov/atr/case-document/file/501201/download">Text</a>.</span> </li> <li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="http://news.bbc.co.uk/1/hi/business/4834978.stm">"Samsung men 'admit' price fixing"</a>. <i><a href="/wiki/BBC_News" title="BBC News">BBC News</a></i>. 2006-02-22. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20071008183628/http://news.bbc.co.uk/1/hi/business/4834978.stm">Archived</a> from the original on 2007-10-08<span class="reference-accessdate">. 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