Taiwan is set to impose an average 66.83% extra duty on imports of US-made DRAM chips to protect the local industry from dumping. A ruling by the economic ministry’s trade investigation committee upheld a complaint by 30 local semiconductor firms. Although the ruling is still to be debated by the finance ministry, it has raised fears of a full-scale, tit-for-tat trade war, coming as it did just days after the US Department of Commerce announced a similar levy on Taiwan chipmakers.
Committee official Huang Chih-hui said leading US DRAM maker Micron Technology was to blame in particular as it had been selling in Taiwan at unfair prices since 1997 leading to heavy losses for the local industry. As well as Micron, the US affiliates of South Korean semiconductor giants Samsung Electronics and Hyundai Electronics Industries were named in the ruling.
The committee found the alleged US dumping had caused annual losses to Vanguard International Semiconductor of more than $150m while Powerchip Semiconductor and Mosel Vitelic suffered losses of about $110m and $70m respectively as a direct result.
Although Huang denied the committee had any political motives, the case was wrapped up with unusual speed as investigations began less than a month ago. The findings coming so soon after the US ruling points to a direct connection, analysts claim.
This view is backed up by comments from the Taiwanese manufacturers. Micron and the two South Korean makers control international prices, not Taiwan, said Mosel Vitelic director Chen Wen-yi. Taiwan has the ability to be the world’s DRAM leader and in order to foster this, we will fight our case against US makers to the end.
