Chipmakers to pay $173 million to settle price fixing case
25 Jun 2010
Six chip manufacturers have agreed to pay $173 million to settle an US class-action lawsuit bought on 33 state attorneys accusing them of illegally conspiring to fix prices on chips used in computer equipments.
California State Attorney General Edmund Brown alleged that the six companies had conspired to keep DRAM prices artificially high instead of letting market forces operate freely through competition.
DRAM is a common form of memory chip that stores information temporarily for quick access. It is found in desktop computers, laptops, servers, printers and networking equipment such as routers and hubs.
DRAM sales to major electronic manufacturers, including Dell, IBM, and Hewlett-Packard, exceed $5 billion a year in the US and $17 billion worldwide.
The DRAM manufacturers named in the lawsuit include Micron Technology, NEC Electronics, Infineon Technologies, Hynix Semiconductor, Elpida Memory and Mosel-Vitelic Corporation.
"These companies conspired in an illegal global scheme to fix prices on chips used in computer equipment sold to consumers, schools and government offices," Brown said. "The large price tag of this settlement should serve as a warning that we will crack down on any manufacturers around the world that choose to gouge consumers through illegal price-fixing schemes."
