Hynix preparing to Japan's import tax on DRAM

By Justin Mann on January 20, 2006, 2:21 PM
Last year, Japan announced plans to add a hefty tax for imported Hynix DRAM. Hynix is one of the largest memory manufacturers in the world, and the impact of a tax to one of the biggest consumers of DRAM would have a pretty large effect on the company. The South Korean Government is fighting back, threatening legal action in Japan as well as filing complaints with the WTO if the tax is not repealed.

This week, the Korean Ministry of Commerce, Industry & Energy described Japan's punitive tax plan as "unreasonable and disappointing", and claimed it has "no legal basis". It said that while discussions between the two nations have sought to resolve the matter, little progress has been made. It also said that it would consider legal action in Japan.
Many other countries already tax imports of Hynix products, including the U.S. and European Union. Hynix has fought them every step of the way as well, but did not prevail. From a consumer standpoint, it means more expensive RAM (at least Hynix-based) in Japan, though other options are open.

User Comments: 8

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Vaulden said:
Interesting... from the look of the articles Hynix has been having legal issues left and right both as plaintiff and defendant. Though 27.5% tax is low compared to the EU and US taxes (34.8% and 44.7% respectively). After having lost two such battles already I wonder why they are trying again.
MonkeyMan said:
Wow, Hynix is receiving lots of legal backlash these days. I only hope that they straighten up their act, and lower the prices of DRAM. Well, for Japanese consumers, this might be disappointing, but as for the US consumers, I'm not sure if it will have a big effect on us.
mentaljedi said:
Id on't know about Hunix but it seems that they'll eveuntally go down if this keeps up. Is it cos its Koean or something?
nathanskywalker said:
Yeah, no kidding, that is a big tax. I certainly hope that the japense don't get their way.
Race said:
According to the details, Japan is simply trying to protect it's own memory companies with the import tax, like any country would do. They also suspect Hynix of getting a helping hand, or "financial aid", from their own (Korean) government.....a no-no.Since Japan's tax is lower than other importers, it seems reasonable to me. Besides, I'm sure the Japanese people have a pretty good selection when it comes to DRAM, so it's not like they have to buy Hynix.
Cartz said:
I would wager that if the US and the EU are also taxing this memory at such a high rate, that some government assistance is involved. The fact that it is still at least marginally competitive seems to back that fact up further...In any case, I'm happy to see a government actively step in and protect its own from foreign predatory pricing. This kind of thing needs to be done more often, for when a company goes under due to a foreign competitor, no one wins.
cyrax said:
Ram is already rediculously expensive, next to processors of course. I cannot see what benifit this would have for anyone. We are all going to feel this draining of our money sooner than we would like.
Mictlantecuhtli said:
[b]Originally posted by cyrax:[/b][quote]Ram is already rediculously expensive, next to processors of course.[/quote]Only if you buy the fastest, just like with CPUs. 512 MB modules are about 40-50 and 1 GB about 90-100 here.
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