The chips affected are Dynamic Random Access Memory, or DRAM, chips, the most common type of RAM for personal computers. Germany's Infineon Technologies AG, a rival manufacturer of DRAM chips, complained to the EU about Korean subsidies last year. The ensuing investigation has lasted nine months and is still ongoing. It initially focussed on two companies.
The first, Samsung Electronics, was found to have received subsidies to a value marginally beneath the level at which duties can be imposed, and no action is being taken.
The second company, Hynix, was found to have benefited from two types of subsidy, in the form of a refinancing programme with the Korean Development Bank and further financing from a group of different banks. Both measures were carried out under the influence of the Korean government.
In a statement the Commission said: "The financing was found not to have been granted under market conditions." It added that, "The investigation showed that Korean imports caused a negative impact on the Community chip producer: the sales prices of DRAMs fell dramatically in the period investigated causing significant losses to the Community producers."
The Commission has therefore imposed a duty on Hynix, but on a provisional basis only. The Commission has a further four months in which to make a final decision.
The EU ruling follows a decision by the US Commerce Department early this month to impose a 57.37% tariff on similar imports from Hynix. It is reported in the EE Times that similar charges may also be brought against the company in Taiwan and Japan.