Hsinchu, Taiwan -- The Taiwan cabinet Friday approved a preliminary 61.85% dumping tariff against Micron Technology Inc. and other U.S. DRAM makers. The government will make a final decision in January.
A spokeswoman at Micron's Boise, Idaho, headquarters said the company had not yet received any word from the Taiwan government. Micron has called the suit a spite action in retaliation for its having filed a dumping case of its own in the United States against Taiwan's DRAM producers.
Some local chip executives scoffed at the case, despite the fact it was filed by the Taiwan Semiconductor Industry Association. John Hsuan, chief executive of the UMC Group, based here, said, "I don't see any reason for Taiwan to take this kind of action, because there will be no benefit for the local companies."
Hsuan conceded that Micron can avoid paying penalty duties on DRAM exports to Taiwan simply by shipping chips from its fabs outside the United States. And even if Taiwan does finally imposes a tariff against Micron and other U.S. DRAM makers, the penalties would be collected only for a four-month period.
Hsuan called the case "an emotional response" to Micron's DRAM dumping suit against Taiwan's chip firms.
The U.S. Commerce Department has made a final ruling imposing penalty duties ranging from 8.21% to 69% against Taiwan's DRAM producers.
The U.S. International Trade Commission will rule by Nov. 18 whether the industry in the United States has been injured. An affirmative vote would mean dumping penalties would then be imposed retroactive to May.