Given the sheer scale of disruption emanating from the ongoing global memory 'chipflation,' it was only a matter of time before the so-called 'Big Three' - Samsung, SK hynix, and Micron - were dragged into a courtroom on allegations of collusion and price-fixing, as appears to have happened last week just as Apple cited soaring memory prices for implementing a slew of price hikes.
A new lawsuit accuses Samsung, SK hynix, and Micron of using their coordinated "pivot" to HBM as an excuse to keep commodity DRAM production artificially low
Samsung, SK hynix, and Micron were collectively sued on June 25 in a California federal court over allegations of collusion and price-fixing. The lawsuit aims to represent a class of consumers and businesses who've purchased products containing commodity DRAM during the recent price surge.
As for specific allegations, the lawsuit contends that Samsung, SK hynix, and Micron leveraged their apex position within the global DRAM market to bring about a coordinated "pivot" to AI-critical High-Bandwidth Memory (HBM), using this strategic realignment as an excuse to curtail the production of older memory formats such as the DDR3 and DDR4.
According to the lawsuit, this coordinated action has significantly reduced the supply of commodity DRAM, driving up prices by around 700 percent over the last four years as a result, while leading to a "RAMpocalypse." The lawsuit specifically cites Apple's recent sweeping price increases for its iPads and Macs as a casus belli.
Finally, the lawsuit cites previous instances of anti-competitive behavior from Samsung, SK hynix, and Micron to establish a pattern of collusion. After all, Samsung and SK hynix have already pled guilty to criminal price-fixing charges brought by the US Department of Justice in the 2000s, resulting in $731 million in fines and prison sentences for several executives.
This lawsuit comes at a time when a number of companies, including Lenovo, are warning of a "new normal" of elevated memory prices. Of course, these companies have an ulterior motive behind issuing such warnings. After all, if consumers think memory prices will normalize by next year, they'll hold off on making purchase decisions.
Even so, firms like Jefferies do not see any imminent normalization, forecasting a 40-50 percent rise in memory prices in Q3 2026 versus the current quarter, and another 30-40 percent sequential increase in the fourth quarter of the ongoing year. For 2027, the firm expects another year-over-year increase of 40-45 percent, with memory prices only moderating somewhat in 2028.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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