New US Tariffs: Memory Manufacturers Face 100% Duty Risk on Offshore Production

Well, it appears that, on top of the memory shortages, suppliers like SK hynix and Samsung face a new threat: the U.S. is considering imposing 100% tariffs on offshore producers. Samsung & SK hynix Could Come Under the Scope of New "Memory Tariffs" If DRAM Production Gets Targeted American manufacturing has been a priority of the Trump administration, particularly in high-value segments such as semiconductors and AI. The "Made in USA" narrative has seen immense traction in recent times, credited to investments from TSMC, Samsung, and other players in the supply chain, and now it appears that DRAM manufacturers might be next. Speaking at Micron's New York fab groundbreaking ceremony, U.S. Commerce Secretary Howard Lutnick announced that memory players that do not produce domestically will face a 100% tariff. Everyone who wants to build memory has two choices: They can pay a 100% tariff, or they can build in America. - Commerce Secretary Howard Lutnick via Bloomberg This is the first time the US has targeted DRAM suppliers specifically, and given how valuable memory chips have become for the AI industry, this was coming. While Lutnick or the Commerce Department didn't specify any companies that would fall under the scope of the tariff policy, it's essential to examine major DRAM producers to see whether they have committed to "DRAM" production for use. The first major one, Samsung, has announced semiconductor commitments involving frontend and backend elements, but there is no plan to build a memory fab yet. Moreover, SK hynix recently announced a $4 billion commitment in West Lafayette, Indiana, but it involves 2.5D packaging and R&D work; DRAM production lines haven't been the scope of the investment. The only major company producing DRAM chips in America, or at least intends to, is Micron, so given that the Trump administration actually targets the memory industry, several mainstream players could come under the scope of a 100% tariff, which could be fatal for many producers. Taiwanese manufacturers like Nanya Technology and Winbond Electronics, who are a decent part of the DRAM supply chain, could also see the imposition of 'memory tariffs', and this could prove to be a massive trouble. The AI demand has already driven DRAM prices to levels never seen before, and a potential 100% tariff could be detrimental to an industry already struggling to scale up production capacity.