US probe into memory chip firms

NAND flash memory is used to store pictures in mobile phones

US authorities have launched an investigation into the practices of firms that make memory chips used in MP3 players and digital cameras.

Japan's Toshiba and US firm SanDisk both said they had been ordered to give evidence relating to the Department of Justice (DoJ) investigation.

It is the latest case in a crackdown on price-fixing among global chipmakers.

A probe into the Dynamic Random Access Memory (DRAM) chip market for computers last year led to steep fines.

And last October, US authorities opened an investigation into the supply of Static Random Access Memory (SRAM) chips, which provide rapid access to data in computer and telephone networks.

Now companies involved in the flash memory business are under scrutiny over possible unfair business practices, such as sharing price details, which could stifle competition.

Flash memory cartel?

The DoJ has confirmed that its anti-trust division was "investigating the possibility of anti-competitive practices in the flash memory industry".

The biggest producer of these NAND flash memory chips Samsung said it would cooperate with Department of Justice (DoJ) enquiries.

"Samsung is strongly committed to fair, competitive business practices and forbids anti-competitive behaviour," the company said.

But it was unclear whether the electronics giant was involved in the investigation and whether it had been served with a subpoena.

California-based SanDisk said the company and its chief executive Eli Harari had received grand jury subpoenas to preserve documents related to possible anti-trust violations.

The DoJ order comes a month after the company was sued with 23 other companies in a consumer class action over a conspiracy to fix prices of flash memory.

The lawsuit was filed in a US District Court in Northern California, according to a regulatory filing from the company.

Hynix Semiconductor, the world's third-largest NAND flash manufacturer, said on Monday it had not been contacted by US authorities about the investigation.