Sat, Jul 22, 2006 - Page 11 News List

Agency to keep tabs on DRAM firms

PRICE FIXING? The local companies at the center of recent US allegations are Nanya Technology Corp and Mosel Vitelic Inc, small-fry in the global DRAM business

By Jackie Lin  /  STAFF REPORTER

The Fair Trade Commission (FTC) yesterday said it will conduct research to assess whether two of the nation's computer-memory chip makers are involved in price fixing practices as a US class action lawsuit has alleged.

"There have been market rumors [about them driving up prices of computer memory] but the commission cannot jump to a conclusion right away unless concrete evidence is present," said FTC Chairwoman Chou Ya-shu (周雅淑) during an interview.

She said the commission will be closely watching developments.

In a press release yesterday, the commission said 34 states in the US have indicated that they plan to file a class action lawsuit against a group of seven international manufacturers of dynamic random access memory (DRAM) chips.

The top five firms facing the lawsuits are Samsung Electronics Co and Hynix Semiconductor Inc, both based in South Korea, the US' Micron Technology Inc, Germany's Infineon AG and Tokyo-based Elpida Memory Inc, which in total control around 80 percent of the world market, the statement said.

The other two companies are Taiwanese firms -- Nanya Technology Corp (南亞科技), ranked sixth in the world last year with a 6.1 percent market share, and Mosel Vitelic Inc (茂矽) with a market share of less than 1 percent.

"Compared with their international peers, Nanya and Mosel Vitelic are just price takers and their influence on the DRAM price should be limited," the commission said.

None of the DRAM firms implicated in the class action have ever faced actions from local buyers under the Fair Trade Act (公平交易法), according to the commission. But the commission said it will keep a close eye on the market situation to troubleshoot any irregularities.

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