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Infineon Technologies AG agreed in September 2004 to plead guilty to joining a conspiracy to fix prices for certain DRAM sales and to pay a $160 million criminal fine. The company formally pleaded guilty and was sentenced on October 20, 2004. The case concerned sales to six named computer makers between July 1, 1999, and June 15, 2002—not every DRAM sale or every buyer in the global market.
What happened, and when?
The U.S. Department of Justice (DOJ) announced Infineon’s agreement on September 15, 2004; the formal guilty plea and sentence followed on October 20. The alleged conspiracy period ran from approximately July 1, 1999, through June 15, 2002. The DOJ’s September 15 announcement and case record distinguish the agreement from the later court proceeding.
| Date | Event |
|---|---|
| July 1, 1999–June 15, 2002 | Approximate period of the DRAM price-fixing conspiracy described by the DOJ. |
| September 15, 2004 | The DOJ announced Infineon had agreed to plead guilty and pay a $160 million criminal fine. |
| October 20, 2004 | Infineon pleaded guilty and was sentenced to pay the $160 million fine. |
| December 2, 2004 | Four Infineon executives agreed to plead guilty in related proceedings, according to the DOJ’s executive announcement. |
What is DRAM, and what sales were involved?
DRAM, or dynamic random-access memory, is semiconductor memory used for temporary storage and quick retrieval of electronic information. The DOJ described its use in personal computers and laptops, workstations and servers, printers and hard drives, mobile phones and telecommunications equipment, digital cameras and video recorders, televisions, game consoles, and MP3 players.
The case did not establish that every DRAM product or transaction during those years was affected. The DOJ described the conspiracy in relation to sales to certain computer and server manufacturers, identifying six customers: Dell Inc., Compaq Computer Corp., Hewlett-Packard Co., Apple Computer Inc., International Business Machines Corp. (IBM), and Gateway Inc.
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How did the alleged price-fixing work?
The conduct was more specific than a general claim that competitors charged high prices. According to the DOJ, Infineon and other DRAM producers communicated with competitors about prices, agreed on target prices for certain customers, and submitted quotations consistent with those agreements. They also exchanged customer-sales information to monitor whether participants were following the arrangement. The related executive proceedings described executives authorizing, ordering, or consenting to subordinate employees’ participation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What did the $160 million fine mean?
It was a criminal antitrust fine imposed in the U.S. case. It was not a payment to DRAM buyers, a consumer refund, or a civil damages award. Infineon also agreed to cooperate with the DOJ’s continuing investigation of other DRAM producers. That cooperation places the company’s plea within a broader investigation, but the cited Infineon announcements do not by themselves establish the outcomes or penalties in every related matter.
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