Micron files suit against Korean DRAM subsidies
Nov. 1, 2002 – Boise, ID – Micron Technology Inc. has filed a countervailing duty (CVD) case with the US Department of Commerce and the International Trade Commission against DRAM semiconductor products manufactured in South Korea.
The complaint identifies multi-billion-dollar bailout packages and loan subsidies to South Korean semiconductor companies in violation of US CVD laws and South Korea’s commitments under World Trade Organization agreements. These subsidies have included loan write-offs, debt-for-equity swaps, government-induced debt financings and re-financings on noncommercial terms, special export financing, and special tax treatment.
Commenting on Micron’s filing, CEO and president Steve Appleton stated, “The ongoing subsidization of Korean DRAM manufacturers violates free-market principles and has resulted in excess supply in the international market for DRAM products. Inefficient manufacturing operations should not be allowed to escape normal market forces. Korea has not kept its commitments to the World Trade Organization and continues to violate US Countervailing Duty laws.”
According to Micron’s complaint, subsidies benefiting South Korean semiconductor manufacturers have caused economic injury to Micron and other DRAM producers. The filing seeks imposition of a CVD against Korean DRAM imports. The case will proceed simultaneously with the Department of Commerce and with the International Trade Commission.