Sony unit faces US probe on memory chips

01 Nov 2006
00:00

(Associated Press via NewsEdge) Sony said the US Department of Justice is probing its electronics unit as part of an industry-wide investigation into sales of a particular type of memory chip.

The news could spell more trouble for a company already stung by sinking profits, a global battery recall and product delays.

Sony received a subpoena from the Justice Department's antitrust division seeking information about Sony's static random access memory, or SRAM, business, company spokesman Atsuo Omagari said.

'Sony intends to cooperate fully with the DOJ in what appears to be an industry-wide inquiry,' the company said in a short statement.

Separately, EU antitrust regulators said they had raided several chip makers in Germany in October as part of a price-fixing investigation regarding SRAM chips.

Earlier in October, US-based chipmaker Cypress Semiconductor said its SRAM operations were also under investigation by the US Department of Justice.

SRAM is a kind of computer memory that is faster and more reliable than the more extensively used DRAM.

In 2005, Sony sold 3.3 billion yen ($27.7 million) worth of SRAM. The product is made by outside manufacturers for Sony, which in turn sells the memory chips to other electronics makers, Omagari said. He declined to provide other details about the investigation.

A separate DOJ investigation into price-fixing among DRAM companies has so far resulted in more than a dozen charges against individuals and more than $731 million in fines against Samsung Electronics, Elpida Memory, Infineon, and Hynix Semiconductor.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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