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Korean semiconductor firm accused of unfairly subsidizing U.S. exports

WASHINGTON-The Bush administration said Hynix Semiconductor Inc.-a manufacturer of computer chips for mobile phones and other high-tech gear-exported products to the United States that were unfairly subsidized, setting the stage for a 45-percent duty on future imports from the South Korean company.

The International Trade Administration, which issued final determination on the Hynix dynamic random access memory investigation on Tuesday, will make a final injury determination next month. Hynix could escape U.S. retaliation if government officials here conclude U.S. firms were not injured. The 45-percent duty is down from the 57-percent tariff ITA called for in its preliminary ruling in late March.

ITA, a Commerce Department unit, said exports to the United States of DRAM chips made by Samsung Electronics Co Ltd., a major cell-phone vendor, were minimally subsidized. As such, the United States will not take trade action against Samsung.

The U.S. probe of Hynix DRAM exports was prompted by a complaint by Micron Technology Inc., a Boise, Idaho, firm that makes semiconductor products for wireless devices and other high-tech products.

Hynix, which also faces a 33-percent duty on DRAM products in the European Union, has strong government backing in the DRAM trade controversy.

The Korea Herald today said the Korean government will file a formal complaint at the World Trade Organization against the Unites States. “The move by the U.S. Department of Commerce defies all economic principles, and we will take the case to the WTO as early as the end of this month,” said Kim Jong-kap, vice minister of commerce, industry and energy, the paper reported.

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