A class-action lawsuit filed on June 25, 2026, accuses the world’s three dominant memory chip manufacturers of orchestrating a deliberate supply squeeze that has sent consumer RAM prices soaring. The case, brought in the U.S. District Court for the Northern District of California, names Samsung, Micron, and SK Hynix as defendants and alleges a coordinated shift in production priorities that has starved the market of conventional DRAM.
Allegations of a Coordinated Production Shift
According to the complaint, the three companies—which collectively control roughly 90% of the global DRAM market—redirected their manufacturing capacity toward high-bandwidth memory (HBM) for artificial intelligence data centers and enterprise clients. In doing so, the plaintiffs argue, the firms intentionally choked off the supply of mainstream DDR3, DDR4, and DDR5 chips used in personal computers, gaming consoles, smartphones, and memory modules. The lawsuit describes this move as running counter to basic economic logic and labels the resulting price surge a “RAMpocalypse,” with an estimated 700% increase in consumer DRAM costs over a four-year period.
The plaintiffs include 14 individuals and three small PC-building businesses. They contend that no new competitor can realistically enter the market to relieve the pressure, citing the prohibitive cost of constructing new fabrication plants—each requiring an investment of $15 billion to $20 billion and years to bring online. The suit, led by antitrust firm Bathaee Dunne LLP, seeks class-action certification, a court-ordered injunction to halt the alleged price-fixing behavior, and monetary damages.
Micron’s Exit from Consumer Memory
The legal filing highlights a public announcement from Micron in December 2025, in which the company confirmed it would exit the consumer DRAM business. Micron’s Executive Vice President and Chief Business Officer framed the move as a difficult but necessary decision, stating that surging AI-driven data center demand required the company to prioritize larger strategic customers in faster-growing segments. The lawsuit notes that this departure came at what it describes as Micron’s most profitable point in its history, a detail plaintiffs use to underscore their collusion claims.
Ripple Effects Across the Consumer Tech Sector
The strain on conventional memory supply is already cascading through the electronics industry. Console manufacturers, in particular, have begun passing higher component costs on to buyers. Nintendo recently announced a $50 price increase for its Switch 2, raising the retail price from $449.99 to $499.99. In remarks made earlier in May, Nintendo President Shuntaro Furukawa pointed to the prolonged surge in memory and other component expenses, along with foreign exchange volatility and energy costs, as factors expected to persist over the medium to long term. He added that safeguarding a healthy earnings structure was essential for the sustained growth of the company’s dedicated gaming platform business. The broader memory market continues to show signs of tightening, with industry analysts forecasting further sharp price increases in the second half of 2026 as AI-driven demand further outpaces available supply.
Sources: seekingalpha.com, www.law360.com