Hynix Semiconductor Inc. Monday denied charges by Micron Technology Inc. that the Korean DRAM maker received improper government subsidies, claiming the company's financial restructuring was conducted "by commercial banks and does not involve the Korean government at all."
Micron late last week filed a countervailing duty case with the U.S. Commerce Department and International Trade Commission claiming that Hynix has received "multi-billion dollar bailout packages and loan subsidies in violation of U.S. countervailing duty laws and South Korea's commitments under World Trade Organization agreements."
Hynix also charged in a company statement that Micron itself "has received substantial subsidies from the Italian government and the Singapore government to upgrade Micron facilities in these countries."
Hynix also asserted that Micron suffered losses in 2001 because the cyclical DRAM market that year was down.
"DRAM prices are set in global markets based on supply and demand. Individual firms react to this market price. It ignores the market realities to claim that Hynix has somehow driven down the price," the company said in its statement.
The Korean chipmaker also argued that the global DRAM market has started to recover in 2002. "It makes no sense to take action now that can only burden DRAM users without benefiting DRAM producers," Hynix said in its statement.