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Government rules in favor of Micron in Korea dispute
Micron Technology Inc. last November had filed a complaint seeking countervailing duties against Hynix Semiconductor Inc. and Samsung Electronics Co. for illegal government subsidies. In its petition, Micron charged that Hynix alone had received some $11.9 billion in government aid, including three separate bailouts in 2001 from Korean government-owned or controlled creditor banks. The ITC ruling of injury puts the case on track for the Commerce Department to make a preliminary decision early next year whether the Korean government did provide improper subsidies to the two Korean chipmakers. Tentatively, Commerce is slated to make its preliminary ruling on Jan. 27, but sources said the agency could take another month or more for its decision. Micron had charged in an earlier ITC hearing that subsidies allowed the Korean producers to drive down DRAM market prices and help force Micron into large financial losses. Micron chairman and president Steve Appleton told the ITC that his firm had suffered nearly $1 billion in losses in each of its last two fiscal years. Hynix attorneys retorted by quoting from Micron's own statements to financial analysts and the press that the firm was in good health and had a strong cash position. Hynix lawyers today said they were neither surprised nor dismayed by the preliminary ITC decision. Artorneys Daniel Porter and James Durling said because of the short 45-day time period in which to rule, the ITC by law must issue an affirmative prelininary injury finding as long as there is "reasonable indications" of material injury. "Essentially, under the legal standard at this stage of the case, Micron is given the benefit of the doubt," Durling said. The Hynix lawyers claimed the final ITC decision next year under much tighter legal standards will determine that Micron suffered no injury.
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