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  1. Technology
March 15, 1988


By CBR Staff Writer

The first recorded lawsuit over the soaring memory chip prices has been brought against Micron Technology Corp, Boise, Idaho by Atari Corp, Sunnyvale, California. Atari’s suit charges Micron with unlawful exploitation of the dynamic random access memory circuits shortage created by federal restrictions on importation of the circuits from Japan and seeks damages for breach of contract, bad faith and violation of federal antitrust laws. It’s a crazy situation, said president Sam Tramiel – First Micron pleads with the government to impose sanctions on the Japanese for selling low-cost DRAM chips, then they raise their own prices to several times their cost of manufacturing the circuits. Atari contends that Micron agreed to sell it 256Ks at $3.75 each, nearly triple Micron’s cost of production and then repudiated the contract in the hope of commanding even higher prices.

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