64K DYNAMIC RANDOM ACCESS MEMORY COMPONENTS FROM JAPAN Determination of th• Con'l'nission In Investigation No. 731-TA-270 (Preliminary) Under the Tariff Act of 1930, Together With the lnfonnation Obtained in the Investigation U$1TC PUBLICATION 1735 AUGUST 1985 United States International Trade Commission I Washington, D.C. 20436 UNITED STATES INTERNATIONAL TRADE COllllISSION COMMISSIONERS · Paula Stern, Chairwoman Susan W. Llebeler, Vice Chairman . Alfred E. Eckes Seeley G. Lodwick David B. Rohr Staff Assigned: George L. Deyman, Office of Investigations Nelson J. Hogge, Office of Industries Howard L. Gooley, Office of Economics Richard Laulor, Office of Investigations Wayne Herrington, Office of the General Counsel Lynn Featherstone, Supervisory Investigator Address all communica~ions to Kenneth R. Mason, Secretary to the Commiuion United S~ates International Trade Commission Washington, DC 20436 C 0 N T E N T S Determinations--···--·----.. ··-..···-··------, 1 Views of the Commission-------· 3 Information obtained in the investigation: Introduction-····---·-···-----·""'"'.--·--·.. -·----- A-1 Prev ious Commission investigations---·-·---~---­ A-1 The product: Description and uses-------··--.----·- A-2 U. S. tariff treatment ·------------ A-3 Nature and extent of alleged sales at L TFV--·---,---­ A-4 The domestic market: Pr.oducers A-4 U.S. importers from JaP.an A-8 Apparent U.S. consumption A-9 Channels of distribution A-10 The industry in ·Japan A-11 Consideration of alleged material in1ury A-13 Production, capacity, and capacity utilizatio A-14 Producers' domestic shipments A-15 Producers' exports A-16 Producers' inventories A-18 Producers' employment and wages · A-19 Financial experience of U.S. producers A-23 Operations on 64K DRAM's A-23 Capital expenditures and research and development expenses-- A-32 Capital and investment-· A-33 Consideration of alleged threat of material injury A-33 Consideration of the causal relationship between imports allegedly sold at LTFV and the alleged material injury or threat thereof: U.S. imports-:-- A-34 Market penetration of imports A-36 Prices A-36 Trends in prices--.. A-39 ·Prices of 150 ns 64K DRAM's, sold to OEM's A-39 Prices of 150 ns 64K DRAM's, sold to distributors A-46 Prices of 150 ns 64K DRAM' s, sold to spot-market purchasers-- A-46 Prices of 200 ns 64K DRAM's, sold to OEM's A-47 Prices of 200 ns 64K DRAM' .s, sold to distributors A-48 Prices of 200 ns 64K DRAM's, sold to spot-market purchasers-- A-48 Margins of underselling--- A-49 150 ns 64K DRAM's A-49 200 ns 64K DRAM's- A-49 Lost sales--·- A-56 Lost revenue--·----.. ------·----·-·-- A-58 Exchange rates .. ····--.. -·----··---·.. -· A-63 Appendix A. Notice of the Commission's institution of a preliminary ant id umping investigation.. -·----·---·---·-·-· ... - .... ----··-·----··--·---·-·----'"" A-65 Appendix B. Calendar of witnesses at the Commission's public conference--- A-67 Appendix C. The Department of Commerce's noti.ce of institution of an anti dumping investigation-·· --.. --.. --... --·-····:-· ........ --··--.. ·---·--·--·-------... A-71 ii CONTENTS Figure The book-to-bill ratio of the semiconductor .industry, by months, January-December 1984 A-38 Tables 1. MOS memories: Production in Japan, 1982-84 A-12 2. 64K DRAM's: Production, by domestic-c9ntent shares and by producers, 1982-84, .January-March 1984, and January-March .1985-- A-15 3. Final-sealed 64K DRAM's: U.S. product~on, end-of-period capacity, average-for-peri~ capacity, and·capacity utilization, 1982-84, January-March 1984, and January-March 198 . A-16 4. 64K DRAM's: Quantity of producers' total domestic shipments (including captive shipments), by domestic-content shares and by producers, 1982-84, January-March 1984, and January-March .1985-- A-17 5. 64K DRAM's: Quantity ·of producers' domestic open-market shipments, by ~omestic-content shares and by producers, 1982-84, January-March 1984, and January-fllarch 198 A-18 6. 64K ORAM's: Val~e of producers' domestic open-market shipments, by domestic-content shares and by producers, 1982-84, January-March 1984, and january-March 1985 A-19 7. 64K DRAM's: Unit value of producers' domestic open-market shipments, by domestic-content shares and by producers, 1982-84, January-March 1984, and January-March 198 A-20 8. 64K DRAM's: Quantity of producers' exp0rt shipments, by domestic­ content shares anc! by producers, 1982-84, January-March 1984, and January-March 1985 · · A-21 9. 64K DRAM's: Value of producers' export shipments, by domestic- content shares and by producers, 1982-84, January-March 1984, and January-March 198 A-22 10. 64K DRAM's: Unit value of producers' export shipments, by domestic­ content shares and by producers, 1982-84, January-March i984, and January-March 1985 A-23 11. 64K DRAM's: Producers' inventories, by domestic-content shares and by producers, 1982-84, January-March 1984, and January-March 198 A-24 12. 641< ORAM's: Producers' inventories as a share of producers' domestic shipments during the preceding period, by domestic­ content shares, 1982-84, January-March 1984, and January-March 1985 A-25 13. Average number of production and related workers producing 64K DRAM's or 64K DRAM chips in U.S establishments and hours worked by such workers, by types of producers, 1982-84, January-March 1984, and January-March 198f>----.;.- A-26 14. wages paid to production and related workers producing 64K DRAM's and 641< DRAM chips in u·.s. establishments, total compensation paid to such workers, average hourly wages, and average hourly compen­ sation, by types of producers, 19~2-84, January-March 1984, and January--March 1985---·- · ·-- A-27 iii CONTENTS Tables~Continued 15. Income·-and-loss experience of 7 U.S. producers on their Page operations producing 64K DRAM components, accounting years 1982-84 and interim periods ended Mar. 31, 1984, and Mar. 31, 1985-· A-29 16. Income-and~loss experience of 2 U.S. producers on their operations producing 64K DRAM components, accounting years 1982-84 and interim periods ended Mar. 31, 1984, and Mar. 31, .1985 A-30 17. Income-and-loss experience of 4 U.S. producers on their operations producing 64K DRAM components, accounting years 1982-84 and interim periods ended Mar. 31, 1984, and Mar. 31, 198 A-31 18. Income-and-loss experience of ***on its operations producing 64K DRAM components, accounting years 1982-84 and interim periods ended Mar. 31, 1984, and Mar. 31,·1985 . A-32 19. 64K DRAM's: U.S. importers' inventories of merchandise producecl" in Japan, by importers, as of Dec. 31 of 1982-84, Mar. 31, 1984, and Mar. 31, 198 A-34 20. 64K DRAM's: U.S. imports from Japan, by importers, 1982-84, January-March 1984, and January-March 198 A-35 21. 64K DRAM's: U.S. imports from Japan and apparent U.S. consumption, 1982-84, January-March 1984, and January-March 198 A-37 22. 64K DRAM's (150 ns): Weighted-average net selling prices for sales of domestic products and for sales of imports from Japan in quantities of 10,000 units or less to 3 classes of customers, and indexes of those prices, by quarters, January 1983-September 1984, and by months, October 1984-June 198~ · A-40 23. 64K DRAM's (150 ns): Weighted-average net selling prices for.sales of domestic products and for sales of imports from Japan in quantities of over 10,000 units to 100,000 units to 3 classes of customers, and indexes of those prices, by quarters, January 1983-September 1984, and by months, October 1984~June 1985 A-41 24. 64K DRAM's (150 ns): Weighted-average net selling prices for sales ()f domestk products and for sales of imports from Japan in quantities of over 100,000 units to 3 classes of customers, and indexes of those prices, by quarters, January 1983-September 1984, and by months, October 1984-June 198 A-42 25. 64K DRAM's (200 ns): Weighted-average net selling prices for sales of domestic products and for sales of imports from Japan in quantities of 10,000 units or less to 3 classes of customers, and indexes of those prices, by quarters, January 1983-September 1984, and by months, October 1984-June 1985--- A-43 26. 64K DRAM's (200 ns): Weighted-average net selling prices for sales of domestic products and for sales of imports from Japan in quantities of over 10,000 units to 100,000 units to 3 classes of customers, and indexes of those prices, by quarters, January 1983-September 1984 ,· and by months, October 1984-June 1985-·-----------.. ----·-------···~ A-44 iv CONTENTS Tables~Continued 27. 64K DRAM's (200 ns): Weighted-average net selling prices for sales Page of domestic products and for sales of imports from Japan in quantities of over 100,000 units to 3 classes of customers, and indexes of those prices, by quarters, January 1983-September 1984, and by months, October 1984-June 1985 A-45 28. 64K DRAM's (150 ns) sold factory direct to original-equipment manu­ facturers: Average margins by which imports of Japanese DRAM's undersold or oversold U.S.-produced DRAM's based on weighted-average net selling prices of re.presentative low-priced sales, by sizes of sales, by quarters, January 1983-September 1984, and by months, October 1984-June 1985 A-SO 29. 64K DRAM's (150 ns) ~old factory direct to authorized distributors: Average margins by which imports of Japanese DRAM's undersold or oversold U.S.-produced DRAM's based on weighted-average net selling prices of representative low-priced sales, by sizes of sales, by quarters, January 1983-September 1984, and by months, October 1984-June 1985 A-51 30.