Lutnick Tells Samsung, SK Hynix They Have 'No Choice' but to Build US AI Memory Fabs
US Commerce Secretary Howard Lutnick publicly pressured South Korean chip giants Samsung and SK Hynix to build AI memory fabs in the US, stating they have 'no choice'. The remarks, made at a Micron event, could put Micron in an awkward position as a competitor.
In a direct push to secure America's artificial intelligence hardware pipeline, U.S. Commerce Secretary Howard Lutnick has publicly pressured South Korean semiconductor giants Samsung Electronics and SK Hynix Inc. to construct local AI memory fabs.
Speaking at a Micron Technology (NASDAQ: MU) event, Lutnick's comments may not sit well with Micron's CEO, as the U.S. company is a direct rival to the Korean duo in the AI memory market.
Details
Lutnick emphasized that U.S. national security and AI leadership depend on domestic manufacturing of high-performance memory chips. "They have no choice. If they want to sell us memory chips, they have to build them here," he said.
Context
The remarks come as the Biden administration pushes to boost domestic semiconductor production through the CHIPS Act. Micron, already investing billions in new U.S. fabs, faces potential increased competition if Samsung and SK Hynix accelerate their American investments.
What It Means for Investors
The political pressure could accelerate Korean chipmakers' U.S. investments, intensifying competition for Micron in the lucrative AI memory market. Conversely, Micron may benefit from a stronger local ecosystem. Investors await responses from the three companies.
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