The US Commerce Secretary, Howard Lutnick, has publicly pressured Samsung Electronics Co., Ltd. and SK hynix to expedite their capacity expansion plans within the United States to address the global memory chip shortage.
On July 10th, it was reported that Lutnick made these remarks at an event hosted by Micron Technology and confirmed that discussions with the two South Korean firms were underway, though specific details were not disclosed. He stated the clear objective is to bring both Samsung and SK hynix to establish manufacturing facilities on US soil, aiming to strengthen the resilience of the American semiconductor supply chain.
Concurrently, Micron announced on the same day that it is raising its US investment plan to a cumulative $250 billion through 2035. This news boosted Micron's stock price, which surged over 9% intraday, bringing its year-to-date gains to more than 250%.
The timing of these comments is significant. SK hynix is preparing for its US listing, with its American Depositary Receipts (ADRs) set to begin trading this Friday, July 10th. Based on the latest closing price in Seoul, the offering could raise approximately $27 billion, with proceeds earmarked for capacity expansion. Samsung and SK hynix have collectively planned investments totaling $880 billion over the coming years to build new factories, driven by surging AI-related memory demand.
Pressuring Korean Giants to Fortify US Supply
According to reports, Lutnick spoke near Micron's new facility outside Syracuse, New York, explicitly naming Samsung and SK hynix and expressing a desire to bring these competitors to build plants in the US.
He acknowledged that Micron's CEO, Sanjay Mehrotra, might not welcome the idea but emphasized that the strategic priority of supply chain security outweighs the commercial interests of any single company.
"He may not like it, but I want to bring his competitors—Samsung and SK hynix—to build in the United States," Lutnick said. "Micron is in the lead, others will be envious, they have to keep up."
The report noted Micron's announcement of its increased US investment target to $250 billion by 2035, a significant upward revision from prior plans. Lutnick praised this move highly, stating the US needs to protect quality companies investing intellectual property domestically and expressed a hope for Micron to build "as fast as you can."
Buoyed by this news, Micron's stock rose as much as 9.1% intraday to $1,035.50 per share, with its year-to-date increase exceeding 250%, leading performance among US semiconductor peers.
The explosive growth in AI infrastructure has triggered a global tightening of memory chip supply, impacting several downstream industries including consumer electronics and automotive manufacturing. Apple recently raised prices across its Mac, iPad, home device, and Vision Pro lines, citing increased memory costs as a partial reason.
Analysis suggests that within this context, Lutnick's pressure carries heightened policy significance—the US government is attempting to reshape the memory chip supply chain landscape by simultaneously attracting foreign investment for domestic manufacturing and supporting local champions, aiming to reduce reliance on overseas production capacity.
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