Samsung, SK Hynix, Micron Hit with Class Action Lawsuit Over 700% Memory Price Hike in Four Years

On June 25, 2026, 17 U.S. consumers and small business owners filed a class action lawsuit in the Northern District of California against Samsung, SK Hynix, and Micron, accusing the three memory giants of conspiring to cut legacy DRAM capacity and artificially inflate prices, violating the Sherman Act. Plaintiffs allege that the companies used the transition to AI high-bandwidth memory (HBM) as a cover to collusively reduce DDR3 and DDR4 output, driving DRAM prices up by approximately 700% over four years. In Q1 2026, contract prices rose 90% quarter-over-quarter, followed by another 60% in Q2. Apple announced iPad and Mac price hikes the same day, attributing the increase to upstream memory costs.

Lawsuit Background and Allegations

• Market Monopoly: The three companies collectively control about 90% of the global DRAM market. Building a new fab costs $15-20 billion and takes years, leaving the market without quick corrective mechanisms.
• Prior Offenses: In 2002, Samsung and SK Hynix pleaded guilty to DRAM price-fixing, paying approximately $485 million in fines, with several executives imprisoned; Micron avoided penalties by whistleblowing. A similar class action in 2018 was dismissed, with the court ruling that parallel conduct was not illegal.
• New Evidence: Plaintiffs point to Samsung's unprecedented 2023 production cut (its first ever), synchronized capacity reductions across consumer product lines by all three firms, refusal of long-term contracts, and Micron's shutdown of its consumer brand Crucial during peak pricing.

Memory Price Surge and AI Capacity Competition

• Price Spike: 32GB DDR5 kits rose from $95 to $184, and DDR4 kits from $70 to $161, with a 187% year-over-year increase by end of 2025.
• Capacity Shift: Since 2023, the three companies have diverted 80%-90% of new wafer capacity to HBM, with each HBM consuming 3-4 times the wafer area of standard DRAM. AI data centers absorb 15%-20% of consumer capacity.
• Supply-Demand Gap: Micron's CEO stated it can only meet 50%-66% of customer demand; analyst Ming-Chi Kuo predicts the shortage will last at least until 2027.

Market Reaction and Impact

• Apple Price Hikes: MacBook Neo rose from $599 to $699, iPad from $349 to $449. Apple cited memory costs four times higher than three quarters ago, with its stock falling 6.1% on the day.
• Industry Shock: Dell's COO said memory price increases have never been this rapid; IDC forecasts a 11.3% decline in the PC market and 14% drop in smartphones for 2026.
• Micron's Market Cap Soars: On June 25, Micron reported revenue of $41.46 billion (up 346% YoY) with an 85% gross margin. Its stock surged 18.4% in a single day, pushing its market cap to $1.4 trillion, surpassing Meta and Tesla. Wall Street dubs it "the next NVIDIA."

Outlook and Controversy

• Lawsuit Prospects: The court must determine whether the three companies had an "actual agreement" rather than independent decisions. A similar 2018 case was dismissed; this time plaintiffs added details like Samsung's unusual production cut. A verdict may take years, and even a win won't immediately boost capacity.
• Price Outlook: Kuo and Jefferies analysts believe memory prices are unlikely to peak and fall within 2026, with structural easing possibly not until 2027. Samsung and SK Hynix have not announced consumer capacity expansion plans.
• Industry Chain Reactions: Samsung is preparing a ~90 trillion won stock buyback; Chinese DRAM maker CXMT is racing toward a STAR Market IPO, reporting Q1 2026 revenue of 50.8 billion yuan.