Taiwanese DRAM Manufacturers to Collaborate Against Hynix

by Anton Shilov
04/18/2003 | 09:02 AM

Taiwanese DRAM makers prepare to sign a petition to the government in order to force Hynix Semiconductor to pay punitive import duties when selling memory chips to Taiwanese consumers. According to local press, Nanya, Powerchip Semiconductor Corporation (PSC), Winbond Electronics and Mosel Vitelic are going to fill class-action suite against the struggling memory maker.

Just like overseas Micron Technology and German Infineon AG, Taiwanese memory makers and designers said that Hynix Semiconductor received illegal subsidies from the Korean Government what eventually harmed DRAM manufacturers’ business. The terms of the petition are yet to be determined, but even now it is clear that the whole DRAM world is against the mighty number three memory maker in the world. As we already told you earlier this year, both European Commission as well as the U.S. Department of Commerce ruled against Hynix and may propose 35% to more than 55% import duties on Hynix’s production.

In case Taiwanese commission also decides that Hynix had received illegal subsidies from the Korean Government, the memory maker may eventually loose not only European and the US, but also Taiwanese market. All memory makers are very likely to benefit from this since with Hynix basically unable to sell memory because of too high import taxes may leave the market and memory prices will go upwards. But there is also the back-side of this situation. Hynix will not destroy or shut down its fabs because of the duties, but will try to sell its memory via other memory makers. The only question is who will take care of Hynix’s output. Maybe Micron, who even wanted to buy Hynix two years ago? Or maybe Samsung Electronics, who refused to rule Hynix last year, but maybe will change its mind this year?

Anyway, even if Hynix will be thrown out of DRAM business later this year, its 12.8% of the market will not vanish into thin air and someone will pick them up. I strongly believe that this mysterious “someone” will benefit from it a lot more than all those, who want Hynix to sink into oblivion...