Three memory manufacturers, Samsung, SK hynix, and Micron, control 90% of the global market. They have been sued for coordinating production cuts that raised prices by 700% in four years. This made computers and phones more expensive for consumers. The case is complex because the law allows companies to act similarly without conspiring, but if the agreement is proven, technology prices could drop.
Technical control of the DRAM and NAND memory market 🖥️
DRAM and NAND memories are key components in devices such as smartphones and servers. Coordinated production cuts affect global supply, raising costs for hardware manufacturers. Samsung, SK hynix, and Micron invest in advanced lithography processes, but stable demand allows for manufacturing adjustments. Without proven collusion, it is difficult to differentiate between a legal business strategy and an illicit agreement. The lawsuit seeks evidence of direct communications between executives.
The memory cartel: prices rising like the CPI 💸
It seems memory manufacturers have discovered the magic formula: reduce production and wait for people to pay more for their phones. Meanwhile, consumers wonder if their next PC will come with a mortgage included. Perhaps next time prices go up, they'll buy us a coffee to console us. Ironies aside, if the lawsuit succeeds, we could see more affordable technology. Or not, because there's always another excuse.