To: sammaster who wrote (45014 ) 4/12/1999 6:23:00 PM From: DJBEINO Read Replies (1) | Respond to of 53903
Taiwan turns the tables on U.S. DRAM makers, files dumping suit By Sandy Chen Electronic Buyers' News (04/12/99, 03:50:24 PM EDT) In a surprising move, the Taiwan Semiconductor Industry Association (TSIA) has filed suit against three U.S. companies - Micron Technology Inc., IBM Corp., and Texas Instruments Inc. - for dumping DRAMs in Taiwan. The charges, which claim that the U.S. chip makers were dumping DRAMs in the Taiwan market from 1997 to 1998, are mainly targeted at Micron, analysts said. Last year, Micron filed a complaint with the U.S. International Trade Commission (ITC), claiming that Taiwan DRAM makers were dumping their products in the U.S. That case is still pending. TSIA's charges against IBM and TI baffled analysts, however. Last year, TI sold its DRAM business to Micron, but the Dallas-based company still got hit with the TSIA suit. Additionally, TI and Taiwan's Acer Inc. were involved in a joint DRAM venture in Hsinchu called TI-Acer Inc. Last year, though, TI sold its shares in TI-Acer to Acer as part of its exit from the DRAM arena. While IBM is a small player in the worldwide DRAM industry, the company, ironically, has licensed its DRAM and logic-chip technology to three Taiwan semiconductor makers, including Acer Semiconductor Manufacturing Corp., Nanya Technology Corp., and Pacific Semiconductor Corp. Still, the TSIA is pressing on with its case. "The message here is that Taiwan is a open market, but all companies should compete fairly,'' said Genda Hu, president of TSIA, a trade organization based in Hsinchu. "It is a fact that U.S. makers are dumping DRAMs in Taiwan. For instance, Micron's DRAM pricing is below its pricing in the U.S.'' Micron's DRAM revenue in Taiwan totaled about $150 million in 1998, nearly 10% of its overall DRAM revenue, according to Hu. "The petition is mainly against Micron,'' said Andrew Lu, vice president of equity research, Credit Suisse First Boston Investment Consulting (Taiwan) Ltd., Taipei. ''Micron accounts for more than 50% of the Taiwan DRAM market after it acquired (TI's DRAM business). '' TSIA filed the suit with the Taipei-based International Trade Commission (ITC), Taiwan's version of the U.S. ITC. Taiwan's ITC will take 45 days to make a ruling in the case. ebnews.com