On January 16th, Micron, a leading global memory manufacturer, began construction on a new $100 billion plant in Syracuse, New York. US Commerce Secretary Howard Lutnick participated in the groundbreaking ceremony.
Everything seemed great at first, but then Lutnick suddenly issued a pretty strong warning to memory chip makers that aren’t based in the US. Bloomberg actually quoted him saying…
If companies want to manufacture memory chips, they have two options: they can face a hefty 100% tax, or they can build their factories here in America. This approach effectively guides industrial development.
US Commerce Secretary Howard Lutnick
Lutnick didn’t mention any specific memory makers, but his warning seems to point to just a few players. Since Micron operates primarily in the US, that essentially narrows it down to only two other companies remaining.
The memory chips Lutnick refers to are largely made by just three companies: Micron, Samsung, and SK Hynix. Micron is based in the US, while Samsung and SK Hynix are South Korean. Together, these three companies produce most of the DRAM used in everything from specialized equipment to everyday consumer electronics.
Only three companies – Micron, Samsung, and SK Hynix – can currently make High-Bandwidth Memory (HBM), a crucial component for advanced AI GPUs used by companies like NVIDIA and AMD. Demand for HBM is so high that Micron recently decided to stop making standard computer RAM altogether and concentrate on supplying AI businesses.
Demand for HBM chips is a major reason behind the current global memory shortages, which are likely to cause prices for all kinds of technology to increase. Memory manufacturers are eager to secure long-term supply deals, particularly when large AI companies offer lucrative contracts.
Because the three biggest memory makers are concentrating on HBM, it’s become difficult for other companies to get enough memory. This has caused prices to skyrocket, and experts don’t foresee any relief in the near future.
Didn’t Samsung and SK Hynix already invest in US chip factories?
The statement made by Lutnick after the Micron groundbreaking ceremony was very similar to one he gave the previous day when the US and Taiwan announced a new trade deal.
Following the announcement of TSMC’s commitment to invest at least $250 billion in building chip factories in the US, Lutnick told CNBC that companies not manufacturing chips domestically could face tariffs as high as 100%.
It’s unclear exactly what will happen, but the US Commerce Secretary’s renewed threats of tariffs could force Samsung and SK Hynix to quickly secure new investments.
Both Samsung and SK Hynix are currently investing in the United States. This year, Samsung committed $40 billion to build a facility in Texas that will produce advanced chip packaging for HBM chips. Last year, SK Hynix announced a $4 billion plant in Indiana to manufacture HBM modules.
The key point is that Samsung and SK Hynix’s US factories don’t actually *make* the chips themselves. They focus on assembling and packaging chips that are manufactured elsewhere and then shipped to the US to become finished products.
(via PC Gamer)
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2026-01-20 18:41