Chinese regulators investigating possibility of DRAM price fixing

In Hardware by Branton10 Comments

If you’ve been wondering why the price of RAM keeps surging, you’re not alone. Regulators from the Chinese National Development and Reform Commission (NDRC) are currently investigating the possibility of DRAM price fixing according to Reuters.

“We have noticed the price surge and will pay more attention to future problems that may be caused by ‘price fixing’ in the sector”

A senior official of the NDRC recently told the China Daily newspaper that they will be closely scrutinizing the companies who make DRAM. The official Xu Xinyu was quoted as stating “We have noticed the price surge and will pay more attention to future problems that may be caused by ‘price fixing’ in the sector.”

There’s really only four major DRAM and NAND suppliers in the entire industry, including Micron, Toshiba, Samsung, and SK Hynix. These companies produce DRAM for pretty much everything. As an example, Micron makes RAM for Crucial. Kingston gets the bulk of their RAM from SK Hynix and Micron. Corsair gets a lot of their RAM from SK Hynix.

Xu Xinyu also referred to the possibility that multiple DRAM manufacturers have been working together to earn more revenue by slowly pushing the price of DRAM through the roof over the past couple of years. Over this time, the price of 8GB of DDR4 RAM has increased from $30-$40 to $90-$100+ or an increase of 200% or more.

The NDRC has allegedly spoken with Samsung according to Wang Yanhui, the Secretary-General of Mobile China Alliance. Samsung allegedly knows about the situation, but the paper didn’t mention much else. According to Wang, it’s still too early to predict what measures might be taken if any.

At the very least, the shortage seems to be stemming from a huge demand for DRAM and NAND to manufacture smartphones. Being that RAM is a crucial component in building a PC, we’ve been feeling the brunt of this price increase for a long time now.

What do you think should be done? Let me know below! 

Source: Reuters

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Branton

Branton

Hi! I'm the founder and lead editor here at PC Game Haven. The first game I ever played on PC was Ultima Online way back in 1999, since then I've been hooked on every facet of PC gaming! Thanks for stopping by!

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Chris
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this is 100% price fixing. its so obvious.

josh
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josh
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do u only rite about what will makes you money?