To: DJBEINO who wrote (38289 ) 9/9/1998 6:07:00 PM From: TREND1 Read Replies (2) | Respond to of 53903
Penalty duties on DRAMs levied against Hyundai and LG Semicon By Jack Robertson WASHINGTON -- The Commerce Department has levied final DRAM dumping duties of 9.28% against LG Semicon Co. and 3.9% against Hyundai Electronics Industries Co. Because the two Korean companies last week agreed in principale to merge their semiconductor operations, it wasn't clear how the dumping duties might be assessed against any new combined company (see Sept. 3 story). In the meantime, they will both immediately be forced to pay the extra tariffs on all their DRAMs imported into the U.S. Because they aren't imported, DRAMs produced at Hyundai's just-opened Eugene, Ore., fab will escape penalties. It wasn't clear, however, if Hyundai's U.S. production was large enough to meet all its DRAM orders from U.S. customers. All imported DRAMs from the two Korean chip makers will now be subject to the penalty duties. In the fiercely price-cutting DRAM markets, the level of penalty tariffs could have an impact. Sources said one way the Koreans might try to get around the penalties is by selling to the large base of PC-motherboard makers in Taiwan, where DRAM chips would lose their identity in board shipments to the U.S. The final ruling raised the dumping duty against LG Semicon from the preliminary 7.61% set last spring. By contrast, the final duties against Hyundai were dropped from the preliminary 12.64%. The dumping decision covered DRAMs imported into the country by the two Korean firms in the 12-month period ended April 30, 1997. It was the fourth year of review in a dumping case brought by Micron Technology Inc. in 1992. No penalty duties have ever been paid by the two firms, which were absolved of dumping in three previous annual reviews. Indeed, Hyundai and LG have protested to the World Trade Organization that the U.S., by its own procedural rules, should have dropped the dumping case after the firms were cleared of any dumping for three consecutive years.