TECH NEWS – This could mean that consumers will pay even more for some manufacturers’ products, which already have bizarre prices.
American manufacturing is one of the Trump administration’s priorities, particularly in high-value sectors like semiconductors and AI. Thanks to investments by TSMC, Samsung, and other players in the supply chain, the “Made in USA” narrative has gained tremendous popularity recently. Now, it appears that DRAM manufacturers may be next. At the groundbreaking ceremony for Micron‘s New York factory, U.S. Secretary of Commerce Howard Lutnick announced that memory manufacturers who do not produce domestically will face a 100% tariff.
This is the first time the U.S. has specifically targeted DRAM suppliers, and, given how valuable memory chips have become to the AI industry, it was to be expected. Although Lutnick and the Department of Commerce did not name specific companies that would be affected by the tariff policy, examining the major DRAM manufacturers’ commitment to DRAM production is important.
Samsung has announced its commitment to manufacturing front- and back-end components but has no plans to build a memory factory at this time. SK Hynix recently announced a $4 billion investment in West Lafayette, Indiana, but this investment will fund 2.5D packaging and research and development, not DRAM production lines. Micron is the only major company that manufactures (or plans to manufacture) DRAM chips in the US. Given that the Trump administration is effectively targeting the memory industry, several mainstream players could find themselves subject to 100% tariffs, which could be fatal for many manufacturers.
Taiwanese manufacturers, such as Nanya Technology and Winbond Electronics, which are significant players in the DRAM supply chain, may also face memory tariffs, which could pose a significant challenge. Already, AI demand has pushed DRAM prices to unprecedented levels, and a potential 100% tariff could further damage an industry that is struggling to increase production capacity.
