Imports from Hynix Semiconductor Inc. and other South Korean chipmakers threaten to hurt Micron Technology Inc, the US International Trade Commission said in a ruling that may lead to import tariffs.
Micron, the world's second-largest maker of computer memory chips and the last one based in the US, complained that its Korean rivals were illegally subsidized by the Korean government.
A final ruling isn't due until the middle of next year.
"[Saturday's] decision sends a strong message that the US will not tolerate unfair trade practices," said Sean Mahoney, a spokesman for the Boise, Idaho, company.
Micron filed its complaint as some chip prices sank earlier this year, falling by as much as a third in mid-June. Infineon Technologies AG, Europe's second-largest chipmaker, in July asked the European Union to investigate whether Hynix and South Korea's Samsung Electronics Co were being illegally subsidized.
The Micron complaint also followed the latest bailout of Hynix, the world's third-largest maker of computer memory chips, by Korea Exchange Bank and other creditors.
The bank is 43 percent government owned.
The IMF said in a recent review of South Korea that government-owned banks should accept that some companies are non-viable and end their support. The IMF took part in a US$60 billion bailout of Korea's finances in 1997.
Samsung, also named in the Micron complaint, is the largest maker of computer memory chips and third-largest maker of mobile phones. Morgan Stanley this week raised the company's profit forecast, citing improved sales of phones.
Micron's case now goes to the US Commerce Department, which will investigate whether billions of dollars in government aid to Hynix and Samsung was illegal, and determine the size of any duties.
A Commerce ruling in Micron's favor would send the case back to the commission for a final determination, not likely before May.
Micron filed its complaint last month. It also followed a failed attempt by Micron to acquire Hynix's assets.
Hynix's board in May had rejected Micron's US$3 billion bid.
The Korea Exchange Bank and other creditors took over the company in June by swapping US$2.4 billion of debt into equity.
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