Montage Technology Hong Kong Stocks Drop 20% After South Korea Price-Fixing Probe

Montage Technology's South Korea office was searched by Seoul Central District Prosecutors' Fair Trade Investigation Department for alleged violations of the Fair Trade Act involving price manipulation. The Hong Kong-listed semiconductor company's stock fell as much as 20.7% to HK$286.6 following the news. South Korean media reported yesterday that prosecutors searched the South Korean offices of three semiconductor companies — China's Montage Technology, Japan's Renesas Electronics, and US-based Rambus — on suspicion of colluding on pricing of memory interface chips supplied to clients including Samsung.

Prosecutors Search Three Semiconductor Companies' South Korea Offices

Seoul Central District Prosecutors' Fair Trade Investigation Department conducted searches of the South Korean offices of Montage Technology (06809), Renesas Electronics, and Rambus on suspicion of violating the Fair Trade Act. According to reports, prosecutors independently discovered that the three companies allegedly colluded on supply prices of memory interface chips to clients including Samsung, prompting the mandatory investigation. As of 1:13 PM, Montage Technology stock traded at HK$291.6, down 19.4%, with turnover exceeding HK$1.6 billion.

Montage Technology Responds to Investigation

A representative from Montage Technology's board office responded to Sina today, stating "the incident occurred yesterday, and we are currently understanding the relevant situation." The representative added that the company has always operated in compliance and will actively cooperate with the investigation, with operations currently running normally.

FAQ

What happened to Montage Technology's South Korea office?

Montage Technology's South Korea office was searched by Seoul Central District Prosecutors' Fair Trade Investigation Department for alleged violations of the Fair Trade Act involving price manipulation of memory interface chips.

How did Montage Technology Hong Kong stocks react to the investigation news?

Montage Technology (06809) stock fell as much as 20.7% to HK$286.6, and as of 1:13 PM traded at HK$291.6, down 19.4%, with turnover exceeding HK$1.6 billion.

Which other companies were investigated alongside Montage Technology?

Japan's Renesas Electronics and US-based Rambus also had their South Korean offices searched by prosecutors on suspicion of colluding on pricing of memory interface chips supplied to clients including Samsung.