Samsung, SK Hynix and Micron have been sued over allegations of RAM price-fixing and supply manipulation

A class action lawsuit has been filed against the world's three largest RAM manufacturers, accusing them of deliberately restricting memory supply and coordinating price increases in conduct widely blamed for driving up the cost of consumer hardware across the industry.

The details:

• The lawsuit, as reported by Law360, names Samsung, SK Hynix and Micron, the three companies that collectively produce almost all of the world's DRAM supply. The complaint alleges they have been working together to fix component prices while reducing supply, in what the media has dubbed "RAMageddon."
• Specifically, the suit accuses the trio of cutting production of DDR3 and DDR4 RAM, the types used in consumer devices, while pivoting resources toward HBM (High Bandwidth Memory), a form of DRAM primarily demanded by AI datacentres. The complaint states the companies have been "simultaneously and publicly directing their resources toward less-profitable-per-die HBM, or in some cases, simply junking conventional DRAM supply channels altogether."
• The lawsuit argues the behaviour is provably anticompetitive because in a normal market, rising prices should attract more supply from at least one of the three manufacturers, undercutting competitors. "That did not happen," it states, suggesting coordination rather than independent decision-making.
• The suit also argues the three firms are effectively unchallengeable. Building a single DRAM fabrication plant costs tens of billions of dollars and takes years, while the manufacturing processes rely on "decades of accumulated trade secrets." US export controls also block Chinese manufacturers from acquiring current-generation equipment, eliminating any realistic outside competition.
• This is not the first time these companies have faced such allegations. In 2005, Samsung pleaded guilty and paid a $300 million fine for DRAM price-fixing, while Hynix paid $185 million. Micron avoided a fine by reporting the incident to prosecutors. The three were also investigated by the Chinese government over a price spike between 2016 and 2018. The suit describes the current situation as "the third such cycle in the same market, among the same firms."
• The timing is significant for gaming hardware. Last week Microsoft raised Xbox console prices by $100 to $150, citing a 2.5x increase in memory costs. Valve set the Steam Machine at $1,049, acknowledging its "original goal for the price is no longer viable." Sony and Nintendo have also raised hardware prices in recent months, with analysts warning further increases are likely if the situation continues.