The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Kim Da-mi, Jeon So-nee team up for coming-of-age film 'Soulmate'

  • 3

    Park Hyung-sik to play crown prince in tvN series 'Our Blooming Youth'

  • 5

    Discussions on raising age for free subway rides gain momentum

  • 7

    Too many emergency text alerts? Gov't to halt daily COVID-19 notifications

  • 9

    First lady expands presence in domestic politics

  • 11

    'Ant-Man 3' promises bigger, better action with same family dynamic: cast

  • 13

    Seoul to discuss reforming free transportation benefits for seniors

  • 15

    FSC OKs Apple Pay to be available in Korea

  • 17

    US reaffirms nuclear security assurances to South Korea

  • 19

    Able C&C sale attracts dozens of potential buyers

  • 2

    Teens feel peer pressure to buy luxury goods endorsed by K-pop stars

  • 4

    Itaewon tragedy's bereaved families harassed by far-right protesters

  • 6

    SM to introduce multi-production system to increase business capabilities

  • 8

    Plan to construct new memorial center for ex-president faces backlash

  • 10

    Ex-justice minister gets 2-year prison term for academic irregularities surrounding family

  • 12

    Families of Itaewon crowd stampede victims clash with police over installation of memorial altar

  • 14

    Apple Pay can be launched in Korea: financial regulator

  • 16

    Naver to roll out conversational AI service

  • 18

    Yoon's office to press charges over report on fortune teller

  • 20

    Naver 2022 net profit down 96% on one-off factor

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
Sun, February 5, 2023 | 17:04
Tech
China demands Samsung, SK cut chip prices
Posted : 2018-05-28 15:05
Updated : 2018-05-28 19:51
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
By Kim Yoo-chul

Senior Chinese government officials have asked Samsung Electronics and SK hynix to cut memory chip prices for leading Chinese consumer electronics companies, sources familiar with the matter said Monday.

"Officials at China's commerce ministry and anti-trust agency asked Samsung Electronics and SK hynix to cut the prices of DRAM chips they sell to Chinese technology companies. Samsung representatives met with Chinese officials, the results of which were notified to Korea's trade ministry. SK hynix is keeping an eye on further developments on the price issue," a high-ranking government official said.

Samsung Electronics declined to comment. No latest updates are available.

The requests were apparently made due to China's concern over the continuing price increases for DRAMs, which are used in all digital devices.

Chinese PC makers have been struggling under component cost pressure as Samsung and SK control over 75 percent of global demand as of the first quarter of 2018. China says it wants to ensure "fair competition" in the market, so that no single supplier becomes too dominant and manipulates prices.

The two Korean companies are most likely to be investigated due to "limiting the amount of products for sale" as a violation of antitrust laws, said market researchers. If Samsung and SK pay a fine, it will be a one-time event.

Sources at Samsung and SK say "price correction" isn't the only reason behind the latest action by China, adding it may want more cross-licensing with the Korean pair.

China has been keen to establish a foothold in the semiconductor industry, as it looks to move into high-value manufacturing and maintain national security with "Made in China" components.

Samsung, SK and Intel of the United States have established memory fabrication facilities in China over the past decade thanks to lower labor costs and favorable tax policies.

"However, China is dissatisfied with the South Korean firms as they have been highly protective with less cross-licensing and often use older technology _ two or more generations behind _ to safeguard their intellectual property rights," said a Samsung source on the condition of anonymity as he wasn't authorized to officially speak to the media.

"With several failed efforts to acquire memory technology from the two companies, China wants to protect its companies from any sudden fallout by helping them save chip procurement costs from major suppliers. I believe more will happen as technology is critical to the cost structure in the memory chip industry," an SK source said.

The indigenous memory technology in China remains three to five years behind that of the Korean companies. Lagging in competition by one generation often implies at least a 30 percent cost disadvantage. After factoring in the more rapid wafer density growth, Samsung and SK, for example, are expected to maintain a minimum five-year advantage in wafer density.

"This implies significant losses for new entrants in an oversupply scenario that China doesn't really want to see," said the source.

DRAMeXchange, a leading market research firm, anticipates such anti-trust investigations may happen again, and that may restrain price increases.



Emailyckim@ktimes.com Article ListMore articles by this reporter
 
Top 10 Stories
1Discussions on raising age for free subway rides gain momentum Discussions on raising age for free subway rides gain momentum
2US reaffirms nuclear security assurances to South KoreaUS reaffirms nuclear security assurances to South Korea
3Will KT, POSCO replace CEOs as Shinhan, Woori did? Will KT, POSCO replace CEOs as Shinhan, Woori did?
4William Franklin Sands' diplomatic and undiplomatic views of late Joseon William Franklin Sands' diplomatic and undiplomatic views of late Joseon
52-year work experience prerequisite unnecessary for foreign shipyard welders 2-year work experience prerequisite unnecessary for foreign shipyard welders
6President Yoon at odds with politician who helped him win electionPresident Yoon at odds with politician who helped him win election
7LG publishes Korea's first group-level net zero report LG publishes Korea's first group-level net zero report
8Conflict reignites over relocation of POSCO Holdings to Pohang Conflict reignites over relocation of POSCO Holdings to Pohang
9Hyundai Motor's technology helps team become WTCR double champion Hyundai Motor's technology helps team become WTCR double champion
109 fishermen, including 2 Vietnamese, missing in boat incident 9 fishermen, including 2 Vietnamese, missing in boat incident
Top 5 Entertainment News
1Kim Da-mi, Jeon So-nee team up for coming-of-age film 'Soulmate'Kim Da-mi, Jeon So-nee team up for coming-of-age film 'Soulmate'
2Park Hyung-sik to play crown prince in tvN series 'Our Blooming Youth'Park Hyung-sik to play crown prince in tvN series 'Our Blooming Youth'
3'Ant-Man 3' promises bigger, better action with same family dynamic: cast 'Ant-Man 3' promises bigger, better action with same family dynamic: cast
4[INTERVIEW] Disney+ 'Big Bet' director on portraying greed and desire INTERVIEWDisney+ 'Big Bet' director on portraying greed and desire
5TXT, Le Sserafim top Oricon album and singles chart TXT, Le Sserafim top Oricon album and singles chart
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group