April 12, 2006 – The European Union will slightly reduce its countervailing tariff on memory chips from South Korea’s Hynix Semiconductor Inc. to 32.9% from 34.8%, following a recommendation from the World Trade Organization (WTO), according to several news reports.

The EU and the US both imposed the duties in 2003; the WTO upheld the US’ 44% tariff in July 2005, but last year ruled that the EU’s level of tariff did not represent the harm done to European chipmakers, including Infineon Technologies AG which filed the original complaint.

The Japanese government reportedly is set to initiate a 27.2% countervailing tariff on Hynix’s DRAM memory chips, after investigating complaints from Elpida Memory Inc. and Micron Japan Ltd. since June 2004. South Korea has asked to sit down with Japanese officials to discuss that move, possibly a prelude to bringing the dispute before the WTO.