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Toshiba and SanDisk under investigation by U.S. Department of Justice over allegations of NAND flash price fixing

NAND flash memory is one of the most common forms of storage for a variety of digital devices from iPods and MP3 players to digital cameras and more. As such an integral part of many consumer electronics, the price of NAND flash directly affects what consumers pay for electronic devices.

Reuters reports Toshiba has been subpoenaed by the U.S. Department of Justice about its flash memory business in America. SanDisk, Toshiba’s U.S. Partner, announced Friday that it and CEO Eli Harari had also received grand jury subpoenas. The subpoenas reportedly indicate a governmental probe into price-fixing in the NAND flash memory industry in America.

Toshiba’s U.S. semiconductor sales unit also received the subpoena, according to Toshiba spokesman Keisuke Ohmori in a statement made Saturday. SanDisk says the subpoenas filed against it and its CEO followed a lawsuit last month alleging price-fixing of flash memory. A bit over a year ago, Rambus faced a similar plight when the U.S. Federal Trade Commission unanimously voted that Rambus unlawfully monopolized the market for DRAM chips.

In that case, it was ruled than Rambus hid patents they held concerning technologies that were going into JEDEC standards. Rambus then waited until companies started using the JEDEC standards to file patent infringement lawsuits.



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Same Ole Same Ole
By SteelyKen on 9/17/2007 8:54:58 PM , Rating: 2
Is the memory industry more rife with corruption, or do they just get caught more than others?




RE: Same Ole Same Ole
By codeThug on 9/17/2007 9:17:54 PM , Rating: 2
Good question. This sort of thing would never happen in other sectors like the petroleum industry...


RE: Same Ole Same Ole
By Sonickid101 on 9/17/2007 9:21:09 PM , Rating: 2
The Memory sector is a very competative market I would'nt be surprised if they were just to get a little ahead of the competition. It's not like a no contest where its only nvidia, or only intel dominating the entire sector.


By PandaBear on 9/17/2007 9:25:19 PM , Rating: 2
This is stupid. How in the world are they price fixing when Samsung is the biggest NAND producer and dump the inventory to a money losing price? SanDisk doesn't have control over their own price in cards (The Taiwanese generic card maker did), let alone price fixing, and Toshiba is even smaller than Hynix in terms of output capacity.

Funny how Apple and the Cell phone industry are not investigated, or even better, the whole Hedge fund and subprime industry.




in the news...
By codeThug on 9/17/07, Rating: -1
RE: in the news...
By JMS on 9/18/2007 1:26:25 AM , Rating: 2
Check the big article on the left.

I think it was posted this morning.


"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive




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