Samsung admits to visit from Chinese regulators

“China (is) trying to protect their PC and smartphone market from rising DRAM costs. Typically, China PC and smart phones sell at lower costs/margins than those in other countries,” Stifel Nicolaus analyst Kevin Cassidy said. China is looking for billions of dollars in funds to propel its domestic ambitions in chips to cut a heavy reliance on imports. Chinese firms have also had a number of overseas deals to buy foreign chip companies blocked by U.S. regulators in recent years, including a bid by Tsinghua Unigroup to acquire U.S. chip group Micron Technology Inc.

Samsung admits to visit from Chinese regulators

“China (is) trying to protect their PC and smartphone market from rising DRAM costs. Typically, China PC and smart phones sell at lower costs/margins than those in other countries,” Stifel Nicolaus analyst Kevin Cassidy said. China is looking for billions of dollars in funds to propel its domestic ambitions in chips to cut a heavy reliance on imports. Chinese firms have also had a number of overseas deals to buy foreign chip companies blocked by U.S. regulators in recent years, including a bid by Tsinghua Unigroup to acquire U.S. chip group Micron Technology Inc.

Samsung  is the latest company to that its sales offices received a visit from China’s State Administration for Market Regulation last week.

A Samsung spokesman tells Reuters the company is cooperating with authorities but didn’t provide more details about the visit.

The visit to Samsung and SK Hynix was reported by the Wall Street Journal earlier today while Micron announced its visit last Friday.

Samsung, SK Hynix, and Micron are the largest DRAM suppliers and DRAM prices are high. Analysts think China is trying to protect its smartphone and PC markets from rising DRAM costs as those products have tighter margins than in other countries.

 

“China (is) trying to protect their PC and smartphone market from rising DRAM costs. Typically, China PC and smart phones sell at lower costs/margins than those in other countries,” Stifel Nicolaus analyst Kevin Cassidy said.

China is looking for billions of dollars in funds to propel its domestic ambitions in chips to cut a heavy reliance on imports.

Chinese firms have also had a number of overseas deals to buy foreign chip companies blocked by U.S. regulators in recent years, including a bid by Tsinghua Unigroup to acquire U.S. chip group Micron Technology Inc.

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