ITC Approves Penalty Duties Against Hynix Semiconductor

by Anton Shilov
07/25/2003 | 03:05 AM

The US International Trade Commission approved countervailing duties of about 45% on DRAM chips imported by Hynix Semiconductor into the USA. The decision to impose penalty duties was made after Micron, a US-based rival of Hynix, accused the company of receiving illegal subsidies from the Korean Government. The company, who also under the same investigation in the EU, criticized the decisions and said it will not impact its DRAM business in the USA.

According to an official from the South Korea-based memory maker, Hynix will receive the ITC’s written rationale in a couple of weeks, and then Hynix will review its options. Two options are possible:

• Appealing the ITC’s decision to the Court of International Trade;
• Having the Government of Korea appeal the decision to the WTO.

Both options could be pursued at the same time.

The official also said that today’s determination, although disappointing, will not bring any significant changes in Hynix’s DRAM production and business operation. He said that Hynix has prepared a thorough plan in advance to minimize the impact of any unfavorable ITC determination.

“Hynix will increase the production of DRAMs in its Eugene, Oregon fab, which is not subject to the CVD duty imposition, to continue to provide quality DRAMs to its U.S. customers,” the official stated.

“Therefore, our existing customers in the USA will not be affected at all by today’s decision,” the official emphasized.