Japanese memory makers were today forced to follow the production cuts initiated by their South Korean counterparts.
Mitsubishi Electric said it will reduce capital expenditure in a bid to prevent its production of Dram memory chips falling below the price it wants to achieve.
That followed a unilateral decision by the South Korean government to restrict export licences to the three major conglomerates that produce memory, in order to reduce production and push up prices.
Now Mitsubishi of Japan will follow suit, giving rise to a domino theory that all Far East manufacturers are in a cabal to keep the prices high.
Taiwanese companies are expected to follow along with all the tiger economies in the Far East, as a reference price on memory looms this March. All the companies deny that they are in a cartel situation. Although most Drams are made in the Far East, German company Siemens and a couple of US manufacturers in the US also produce memory.
The issue is likely to provoke questions in the European Parliament today as ministers and European MPs question whether a cartel situation is likely to arise from the reference price agreement, due to be finalised in two months? time.
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