South Korean semiconductor firms Hynix and Samsung have denied reports that they received government subsidies to keep them afloat as the bottom fell out the chip market.
According to sources quoted by the Korea Economic Daily newspaper, German chip giant Infineon has asked the European Commission to "impose counter-tariffs on chips imported from Korea based on the belief that Korean chip makers are subsidised by the government".
Hynix dismissed the reports and instead cited the newspaper's revelation that Infineon itself allegedly received a $193m subsidy last November from the German government.
Samsung Electronics also denied receiving subsidies and called the rumours "nonsense".
The allegations in the Korea Economic Daily are the latest wave to rock the $12bn dynamic random access memory (DRam) industry, after worldwide demand for chips plummeted and several firms became the target last week of a US Department of Justice probe into price-fixing.
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