We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Samsung exec pleads guilty to price fixing

DRAM price-fixing scandal continues

An executive at Samsung Electronics has agreed to plead guilty to charges that he took part in a conspiracy to fix prices for memory chips bought by Dell, HP and other PC vendors, the US Department of Justice (DOJ) said Thursday.

Il Ung Kim, a South Korean citizen who has been vice president of marketing for the memory division, agreed to pay a $250,000 fine and to serve 14 months in jail. If a judge approves the deal in a hearing on 25 April, the punishment would be the longest imprisonment ever assigned to a foreign defendant charged with price fixing in this country, the DOJ said.

Kim is the sixth Samsung executive to plead guilty in a scheme by several semiconductor manufacturers to set high prices for DRAM (dynamic RAM) chips, which are used to provide high-speed data storage for PCs, handsets, mobile phones, routers, digital cameras, TVs, set-top boxes, gaming consoles and digital music players. DRAM manufacturers sold $28.7 billion of the chips in 2006, the DOJ said.

DOJ prosecutors have charged 18 individuals and four companies in their criminal antitrust lawsuit, saying they formed a cartel to suppress competition through fixing prices for DRAM chips purchased by certain PC and server manufacturers. So far, the charges have lead to 15 convictions and $730 million in court-imposed fines for the actions.


IDG UK Sites

Where to buy iPhone 6 and iPhone 6 Plus in the UK: Launch day price, deals and contracts

IDG UK Sites

Is Apple losing confidence in itself?

IDG UK Sites

Professional photo and video techniques for perfect colours

IDG UK Sites

How (and where) to buy an iPhone 6 or iPhone 6 Plus in the UK. Plus: What to do if you pre-ordered...