Korean memory-chip vendor
will have to pay a hefty duty on U.S. imports, the U.S. International Trade Commission said today. The
duty, which was imposed by the Department of Commerce in June, had to pass muster with the ITC before it could take effect.
The ITC explained that it has decided the U.S. memory-chip industry has been hurt by allegedly subsidized imports from Korea. The finding is bound to please investors and U.S.-based
filed a complaint with trade agencies in November arguing that Hynix unfairly receives subsidies from the Korean government. Germany's
, another Hynix critic, has pressed a similar case through the European Union.
Hynix said it was disappointed by today's finding from the ITC. The company said it hasn't yet decided whether to appeal to the Court of International Trade or ask the Korean government to appeal to the World Trade Organization, or possibly pursue both actions at once.
Hynix said it plans to boost production of DRAMs at an American factory so it can avoid paying the import duty. "Our existing customers in the U.S. will not be affected at all by today's decision," said a Hynix executive in an official statement.
Just before the bell, shares of Micron had climbed $1.04, or 7.3%, to $15.34, while Infineon was up 48 cents, or 3.8%, to $13.17.