The ongoing Memory Crisis faces a new development as a class action lawsuit in California targets the top three leading RAM manufacturers: Samsung, SK Hynix, and Micron. These companies are suspected of operating the RAM Cartel, simultaneously cutting production of DDR3 and DDR4 DRAM in favor of HBM chips.
With the recent price hikes, hardware developers are finding it impossible to purchase their inventory. Many are aware that Micron and other manufacturers are catering to the AI market after seeing the associated businesses buying in bulk. After 7 months, New York law firm Bethaee Dunn LLP is suing Micron and its competitors for conducting anti-competitive conduct.
The RAM Cartel Effects on Electronics Manufacturing
For those unaware, the Memory Crisis has affected the entire tech industry pipeline. Some semiconductor manufacturers, like Micron, have chosen to dedicate their services to AI data centers and cut their major consumers, mainly home appliance and electronics providers.
Now, after a couple of months, these companies are facing allegations of operating a RAM cartel. Three indicators have alerted economists and law firms to this matter. DDR4 and DDR5 RAM prices have steadily increased, with 64 GB of memory being worth up to $1,200 USD.
Apple is fed up with negotiating for cheaper memory to build iPhones and Mac computers. Reports from Jun. 26 say that the company has resorted to asking permission from the US government to cooperate with the blacklisted Chinese RAM companies, such as CXMT. The Pentagon has alleged that these foreign manufacturers have connections with the People’s Liberation Army.
The AI bubble’s high demand is causing factory workers to become overworked and underpaid. The Samsung Strike on May 20 has shown that their memory sector was given an unfair bonus cap. Labor union leader Choi Seung-ho planned to lead around 48,000 workers on an 18-day strike, demanding that management raise wages for excessive labor.
Within 24 hours, Samsung caved and increased the cap by ₩526.65 million ($340,000 in USD). Many believed that memory prices would increase if the intervention didn’t happen. And the decision didn’t matter once the computer memory stocks surged in the week of Jun. 24.
Micron reported their earnings of $41.5 billion in the Q3 fiscal year. Their revenue increased by 74%, while the year-over-year growth rose to 346%. 76% of their sales came from selling DRAM ($31.3 billion). However, Micron’s revenue relies on DDR5 RAM sales, which are only offered to selected GPU and AI partners. They previously ended DDR4 production in 2025.
SK Hynix and Samsung halted DDR3 RAM manufacturing between 2023 and 2024. Both South Korean producers are continuing to sell DDR4 memory to all their customers to keep earnings afloat. Because these three companies control 89% of the world’s memory, it’s not impossible to think that a RAM cartel is being run.
The Bethaee Dunn Lawsuit
On Jun. 29, Law360 reported that Samsung, SK Hynix, and Micron are undergoing a US class action lawsuit in California. The antitrust case, Garciaguierre vs. Samsung, is facing these three chip giants for undermining the scarcity of hardware to justify price-fixing.
Plaintiff representative Belthaee Dunn LLP stated, “The DRAM oligopolists have simultaneously cut production, coordinated a pivot to HBM, and exited from DDR3 and DDR4 memory. […] Otherwise, they decreased and locked up conventional DRAM supply while prices charged at a mind-blowing scale and rapidity. […] Samsung, SK Hynix, and Micron continued to squeeze conventional DRAM supply, simultaneously and publicly directing their resources to the less-profitable-per-die HBM, or simply junking [supply channels] altogether.”
According to the International Electrical and Electronics Engineers, the RAM cartel has been ongoing since the early 2000s in the dot-com boom. The US Justice Department ordered an investigation under the Sherman Antitrust Act, a law that grants authorities the power to file cases involving restrained trade and unlawful monopolization.
During its 12-year investigation and court proceedings, SK Hynix and Samsung pleaded guilty to participating in DRAM price-fixing and paid million-dollar fines. Micron told the press that it will be granted immunity by the US government for blowing the whistle.
The second RAM cartel incident occurred in 2017. Its information is only preserved in Wikipedia and the Wayback Machine archives. Hagens Berman Law Firm filed a lawsuit against these three chip manufacturers for the same crime. This time, RAM prices tripled. Like reading a repeat of the AI Bubble, consumers were unable to get their hands on certain RAM kits. The lack of evidence against the defendants caused the case to be dismissed in 2018.
The 2026 RAM cartel case could reveal the trading malpractices of the tech industry. More companies have spoken out about the RAM scarcity as the Memory Crisis continues. The recent producer Valve has caught attention in multiple interviews. They have spoken about the Steam Machine’s thousand-dollar price tag, which is affected by the top manufacturers’ restrained supply.
