China launches probe of foreign chip makers

China might also be seeking to use the current DRAM pricing environment to gain leverage

Chinese regulators are investigating memory-chip makers Micron Technology Inc, MU 2.00 per cent, Samsung Electronics Co and SK Hynix Inc, 000660 -1.75 per cent, all three of which said State Administra-tion for Market Regulation officials have visited their China offices recently.

The regulator didn’t immediately respond to a request for comment.

The three companies—the dominant suppliers of so-called DRAM chips—said they are cooperating with the investigation, but didn’t say what it is about. Bernstein analyst Mark Newman said it may concern the rising cost of DRAM chips that Chinese smartphone makers are facing as demand continues to outpace supply.

China