South Korean chipmakers expressed concern yesterday over a US trade agency's preliminary ruling that the US memory chip industry has been hurt by imports of Korean chips.
The US International Trade Commission (ITC) said there is a reasonable indication the US chip industry was "materially injured" by imports of Korean chips.
It said that as a result of its finding, the US Department of Commerce will continue to conduct a countervailing duty investigation into the South Korean chip industry.
The ITC's preliminary ruling followed a suit by US giant Micron Technology Inc, which claimed South Korean chip shipments had been subsidized through government-controlled banks.
South Korean chip firms have denied Micron's allegations.
But if they are found to have received state subsidies or other illegal financial benefits, Washington could impose tariffs on South Korean chips.
Samsung Electronics Inc, the world's largest producer of DRAM (dynamic random access memory) chips, refused to comment on the ITC's finding.
But Hynix Semiconductor Inc, the world's third largest DRAM maker, said it was confident Micron's legal action would fail.
"I have no doubt at all that at the end of its full investigation the ITC will conclude that Micron cannot prove its claims and will throw the case out," Hynix chief executive officer Sang Park said.
Hynix could be badly hurt if the US government rules against South Korean companies.
If a final ruling goes against Hynix the company's restructuring efforts would be dealt "a serious blow," said Daewoo Securities analyst Chung Chang-won.
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