09.26.2001
Micron loses appeal on anti-dumping suit

• Development: Micron lost its appeal suit against Taiwan plays for dumping on and damaging the US DRAM market. CIT (Court of International Trade) conveyed its decision in favor of Taiwan plays and reiterated that Taiwan DRAM manufacturers did not cause substantial damage to the US DRAM market.

• Analysis: Micron may not use anti-dumping suits to protect itself from competition again in the future. DRAM market continues to be largely impacted by over-supply and a weak global economy which is unlikely to improve much before 2Q02.

• Primasia View: We agree with CIT’s decision, however we expect a long winter for the beleaguered DRAM market.