Statement of Senator Ron Wyden Before the United States
International Trade Commission
Investigation of Drams and Dram Modules
From Korea
June 24, 2003
Thank you very much, Madam Chairperson.
I am Ron Wyden, United States Senator from Oregon. I appreciate the
opportunity to come before you and your colleagues today to express
my concerns about this investigation and its potential impact on workers
in my home State of Oregon.
I respect and have complete confidence in the Commission’s ability
and commitment to evaluate all the facts in this case, to understand
the complexities of the global and domestic DRAM markets, and to reach
an objective, independent decision. I also believe that you, some of
whom are former Senate staff, understand my duty to represent the interests
of the people of Oregon.
Unemployment in Oregon rose again in May to 8.2%, which once again gives
Oregon the unwelcome position as the state with the highest unemployment
in the country. Oregon is in the third year of economic meltdown, and
has become ground zero for economic hurt. The budget crisis in my state
is the worst since the Great Depression. 12,400 jobs have been lost
in the past year alone.
Oregon’s economic recovery is my top priority. Every job that
can be retained, and every new job that can be created take on greater
significance against this bleak economic backdrop. Hynix has made a
massive investment in a DRAM fabrication facility in Eugene, Oregon.
That facility represents an investment of hundreds of millions of dollars.
It employs more than 1,000 people, many in highly-skilled, well-paid
jobs, and as such is one of the largest private employers in the state.
The jobs at this facility offer a bright light amidst a shadow-filled
economy.
That is why the Commission’s determination in this case is of
the utmost importance to me.
The Commissioners who are familiar with my 21-year voting record in
Congress know that I am a dedicated free trader. I chaired the House
Export Task Force for many years, and have served on the Seanate Commerce
Committee since I was first elected. I understand the importance of
open trade for job creation and for consumers. I also know that some
companies believe they can grow their bottom line faster through litigation
than competition, and I am afraid that this is the case here. Rather
than acknowledge that low prices and oversupply have hurt them, Hynix’s
competitors would rather pursue a trade case in the vain hope of eliminating
Hynix as a competitor.
It is no secret that the global semiconductor industry, and in particular
the DRAM industry, has been in slump for a number of years. This is
the result of a dramatic decline in the demand for semiconductors, and
has adversely affected every manufacturer, some worse than others. This
is a global problem. This industry historically experiences boom-bust
cycles, in which the fortunes of ALL DRAM manufacturers rise and fall
together. As your examination of the semiconductor industry will show,
the current situation is no different, except that it lasted longer
and been more severe than in the past.
The key question the International Trade Commission must answer is whether
the DRAM industry in the United States has been materially injured or
threatened with material injury by Hynix’s exports to the United
States. In fact, during the overall period you are investigating, Hynix’s
exports to the United States actually fell. The major reason for this
is that production from the Eugene plant (which is not a factor in the
determination) was increased as the result of a 2001-2 retooling so
Hynix could better serve its U.S. customers from its U.S. facility.
It is true that during the retooling of the Eugene plant exports temporarily
went up to replace lost production from the Eugene facility, but they
fell again once the plant reopened. Because the volume of imports is
one of the key factors in your injury determination, I think the fact
that exports fell during the period under investigation is very telling.
The Eugene facility is an integral part of Hynix’s global operations,
and whatever determination the Commission reaches will affect the Eugene
plant and its 1,000 workers. Those of you who helped write some of the
key provisions of U.S. trade law know that the goal is to create fair
competition for American workers and U.S. products. Trade law is not
intended to serve as a curtain behind which less competitive companies
could hide until the global market for semiconductors comes back around.
I believe this Commission will reach a fair and just decision that fully
considers the depressed state of the world semiconductor market and
the decline in Hynix exports to the U.S. during the period in question.
In your deliberations, I would also urge the Commissioners to weigh
the effect your decision will have on workers in Oregon.
Thank you again for hearing my views.