Even before anti-dumping measures were brought in against the Korean manufacturers, the surge in demand for bargain-basement personal computers was driving up memory chip prices and leading to tight supplies, and in the usual effect of interference in the market, the unintended outcome of the move against the Koreans is likely to be more pain for smaller personal computer manufacturers already suffering in the price war and forced to abosrb the higher prices because they can’t remain competitive if they raise prices: the price of a 4M-bit chip in the spot market is up about 35% at nearly $13; the preliminary anti-dumping duties assessed for the three companies’ memory chips – which must be confirmed or otherwise in March – are 87.4% on Samsung Electronics Co, 52.4% on Goldstar Electron Co, and 5.99% on Hyundai Electronics Co.
