The International Trade Commission unanimously made a preliminary finding at the end of last week that the Korean government had subsidised the local DRAM makers, what had injured the USA memory chip industry, as reported at EBNews. Currently the finding is not officially published anywhere and no decisions have been made so far. The preliminary results of the investigation will be made public not earlier than in late January and maybe even later. There are no timeframes declared, when the ITC is scheduled to unveil the final results of the investigation and also its decision. I remind you that in case ITC admits the Korean government violated the international trade laws, Korean memory makers may be forced not to sell their DRAM chips outside of Korea.

In early November Micron Technology filed a countervailing duty (CVD) case with the U.S. Department of Commerce and the International Trade Commission against DRAM semiconductor products manufactured in South Korea. The complaint identifies multi-billion-dollar bailout packages and loan subsidies to South Korean semiconductor companies in violation of U.S. Countervailing Duty laws and South Korea’s commitments under World Trade Organisation agreements. These subsidies have included loan write-offs, debt-for-equity swaps, government-induced debt financings and re-financings on non-commercial terms, special export financing and special tax treatment. According to Micron, Hynix alone had received some $11.9 billion in government aid, including three separate bailouts in 2001 from the Korean government-owned or controlled creditor banks.

Micron accused two Korean memory makers, namely Hynix Semiconductor and Samsung Electronics of causing the DRAM prices to fall dramatically. The latter caused Micron to lose nearly $1 billion in each of its last fiscal years. Hynix attorneys said there were no currently reasonable indications of material injury caused by Samsung and Hynix, because Micron had stated in their talks with analysts and press that the firm had been in good health and had a strong cash position.

See also:

- Micron Countervails Korean Government To Subsidy Samsung and Hynix
- Hynix: Between Samsung and Micron
- Micron Reports Financial Results for the Fourth Quarter and Fiscal 2002
- Samsung Shared its Expansion Plans. 33% of DRAM Market by the End of the Year