SK Hynix, Samsung, and Micron face a lawsuit over claims of "concerted anticompetitive behavior" in the DRAM market

SK Hynix, Samsung, and Micron are facing a legal challenge accusing them of engaging in coordinated actions to limit competition within the DRAM sector. The lawsuit, as detailed by Law360, was filed by Bathaee Dunne LLP in the Northern District of California. It asserts that these companies jointly halted DDR3 and DDR4 production to focus on high-bandwidth memory for data centers, while allegedly manipulating supply and pricing from 2022 onwards.

The legal team argues that these companies have intentionally decreased consumer DRAM availability contrary to the expectations of economic models, citing Micron's decision to shutter its Crucial DRAM operations by 2025 at a peak profitability stage. Over a four-year period, conventional DRAM prices have reportedly surged around 700%.

The document further references historical illegal price-fixing activities involving Samsung, Hynix, and Micron, dating back to between 1998 and 2002. The lawyers highlight the significant financial and temporal investments needed to establish a new DRAM fabrication facility, estimated at $15-to-$20 billion, which poses a barrier to new competitors entering the field.

This legal action represents consumers and physical retail outlets. Concurrently, SK Hynix, Samsung, and Micron have secured substantial contracts for supplying AI data centers, leading to a decline in the availability of consumer-focused DRAM and NAND, contributing to price inflation.

Major gaming companies like Sony, Microsoft, Nintendo, and Valve have responded by raising hardware prices. Valve has also noted increased costs for their upcoming Steam Machine console tied to the AI industry's expansion.

Earlier this year, a GamesIndustry.biz interview featured an expert deeming the current hardware market as "totally crazy". Additionally, for its most recent quarter, Micron disclosed a profit increase of 1,398% year-over-year.