Litigation involving the world’s three largest memory-chip manufacturers — Samsung Electronics, SK Hynix, and Micron Technology — has become a recurring feature of the federal court system in the United States, reflecting the strategic importance and competitive pressures of the global semiconductor industry.
The three companies collectively supply the vast majority of the world’s dynamic random-access memory (DRAM) and a substantial share of NAND flash memory, components used in everything from smartphones and laptops to data centers and artificial intelligence systems.
The price of DRAM chips has increased dramatically starting in October. Prices have spiked up to 500%, an increase driven by a shortage as more and more DRAM chips are allocated for use in artificial intelligence applications. The price increases threaten to increase costs for a wide range of consumer products.
Litigation involving the three RAM manufacturers has not changed significantly since the shortage began, but Docket Alarm analytics indicate that litigation has remained relatively constant over the last few years. While Micron and SK Hynix specialize in semiconductors, Samsung is a diversified and expansive electronics company, making everything from smartphones to televisions.
As large technology companies, the most common case type among these three entities is patent, and entities associated with the chipmakers are the defendant more than half of the time. Samsung, as a manufacturer of consumer goods, faces product liability suits as well.
Notably, a large portion of cases involving the companies are heard in the Federal Circuit Court of Appeal, a court that hears appeals from the Patent Trial and Appeal Board. The Eastern District of Texas, famed for its concentration of patent cases, is likewise a popular choice here.
In the early 2000s, the RAM industry was rocked by allegations of price fixing, with five companies, including Samsung, Micron, and SK Hynix, pleading guilty to claims brought by consumer electronics manufacturers. As electronics companies start to feel the pain from the shortage, it’s too early to tell whether any similar claims will be brought today. As of publication, there has been no federal lawsuit since the RAM shortage began that brings an antitrust claim.
