U.S. Commerce Secretary Calls on Samsung and SK Hynix to Increase Efforts to Build Factories in the U.S. and Strengthen AI Chip Local Supply Chain.

U.S. Commerce Secretary Lutnick urged Samsung Electronics and SK Hynix to increase efforts to expand memory chip production in the U.S. to help address the global shortage of components crucial for the development of artificial intelligence. At an event hosted by Micron Technology, Lutnick confirmed that he is in discussions with the two South Korean memory manufacturers, but he refused to provide specific details. He acknowledged that Micron CEO Sanjay Mehrotra may not be pleased with the expansion of competitors' operations in the U.S., but Lutnick emphasized the need to strengthen the U.S. chip supply chain. Lutnick said, "You know, he won't like that, but I want to bring his competitors Samsung and SK Hynix to the U.S. to build plants," "Micron is leading the way. Now others will be jealous, right? And then they will have to follow." As Lutnick made these remarks, SK Hynix was preparing to go public on the U.S. stock exchange, potentially raising nearly $27 billion based on its recent stock closing price in Seoul. The company intends to use these funds to increase its production capacity. SK Hynix's American Depositary Receipts (ADR) are scheduled to begin trading in the U.S. on Friday. Spokespeople for Samsung and SK Hynix did not immediately respond to requests for comment. Both Samsung and SK Hynix plan to invest a total of $88 billion in building new factories over the next few years to meet the soaring demand for memory products fueled by the global AI boom. Earlier on Thursday, Micron announced it plans to increase its investment in the U.S. to $250 billion by 2035, and Lutnick praised this move during a visit to the company's new facility near Syracuse, New York. Lutnick said, "We want to protect our great companies and those who invest in intellectual property in the U.S.," "So my view is, you want Micron to go as fast as it can." In Thursday's New York trading, Micron's stock price rose by as much as 9.1% to $1035.50. The company's stock has risen by over 250% since the beginning of the year, making it the best-performing company among U.S. semiconductor peers. Lutnick largely avoided a question about whether the Trump administration would support Apple's proposal to buy memory chips from two Chinese companies and instead emphasized the importance of protecting intellectual property of U.S. companies. Apple's CEO Tim Cook has been seeking government approval to add Yangtze Memory Technologies and YMTC to its supplier list to help offset rising memory costs. Buying chips from the two companies known as Yangtze and YMTC could trigger a backlash from Washington for Apple. An industry insider familiar with the matter said that if the Trump administration approves Apple's purchase from Yangtze Memory Technologies and YMTC, it could undermine Micron's investment plans in the U.S. as it would give Chinese companies a new foothold. The demand for memory chips driven by artificial intelligence has led to a global shortage of components needed by a wide range of industries, including consumer electronics and automotive manufacturing. Apple recently raised prices on all Mac, iPad, smart home devices, and Vision Pro in an attempt to offset the cost increase caused by the memory shortage.