NuAxiSemiconductor trade intelligence

Judge denies motion to dismiss DRAM price-fixing lawsuit against Micron, Samsung, and SK hynix, finds evidence of DRAM collusion plausible after 500% price surge

What happened

Judge Noël Wise, presiding over the proposed class-action lawsuit against Micron, Samsung, and SK hynix, has denied the companies' motion to have the case dismissed. According to the decision, the defendants' argument that the legal action is just a 'rerun' of the same antitrust case filed against the industry in 2018 was rejected, as the plaintiffs have established new evidence suggesting collusion between the big three memory chip manufacturers. The plaintiffs, made up of 17 individuals and small businesses, allege the companies made four parallel moves that restricted DRAM supply and led to the current shortage, with prices jumping by as much as 500% in one year. Events cited include the 'simultaneous DRAM production cuts' from October 2022 to April 2023, quickly followed by a 'coordinated pivot to HBM,' and the three companies' announcement of winding down DDR4 production within a span of three months, as well as a failure to expand production capacity despite extraordinary prices. Plaintiffs also cited stringent customer vetting procedures, refusal to sign long-term DRAM contracts, Micron's decision to shut down its consumer memory brand Crucial, multiple statements projecting the shortage, and involvement in previous price-fixing scandals. The defendants argued these are logical business moves consistent with their independent self-interest in a highly concentrated market, reacting to the same market pressures. The judge found the case plausible enough to move forward, but this is not a judgment — both sides still must present evidence and arguments before the court. The three companies are given until December 7 to respond to the original complaint, with the case management conference set for January 2027.