34 States of the USA are to sue memory makers for price-fixing during the years of 1998 to 2002.
The states claim that the price fixing has caused financial damage to schools, the Government and consumers. The case will be made against seven chip makers including Elpida Memory, Hynix, Infineon, Micron Technology, Nanya Technology and Samsung.
Samsung has already accepted responsibility last year and it has stated the fines will not affect business since reserve funds have been set aside for fines, which will run into the hundreds of millions of dollars.
The whole scenario started when Apple, Dell and HP launched a request to the US Department of Justice to probe the price fixing and supple dampening. A few years ago the market saw a drop in chip prices, and as a result, some chip makers became bankrupt as they could not compete. Although these seven firms have heavy fines today, they have gained a bigger share of the market through the price-fixing.
Are the firms right to be receiving these heavy fines, and will this affect future prices of components? Let us know over in the forums