US Commerce Secretary Calls for Increased Investment in American Semiconductor Industry

US Commerce Secretary Howard Lutnick has called upon Samsung Electronics and SK Hynix to expand their production in the United States, as Micron accelerates its major domestic investment plan. This move has raised questions about whether the Washington administration is signaling continued shortages in artificial intelligence memory chips.

Direct Appeal to Samsung and SK Hynix

Lutnick made his appeal directly to Samsung and SK Hynix at Micron’s large-scale investment site in the United States. Micron is building a production plant in Clay, New York. The Commerce Secretary expressed his desire to bring Micron’s competitors, Samsung Electronics and SK Hynix, to the United States and have them build production facilities there.

South Korea’s Attention Focused on Samsung and SK Hynix

The remarks made by Lutnick have drawn attention in South Korea because Samsung and SK Hynix recently announced plans to invest 800 trillion won, approximately $530 billion, in the Honam region in southwestern South Korea. Industry officials had already expected Washington to push the Korean chipmakers to increase their U.S. investment.

Effect of Lutnick’s Remarks

Some analysts believe that Lutnick’s call for production investment in the United States, the central market for artificial intelligence, may indicate that memory semiconductors remain in short supply despite debate over whether the chip market is nearing a peak. The remarks are also fueling expectations that the surge in semiconductor demand could continue for some time.

Micron has announced plans to expand its investment in U.S. fabrication plants and technology to more than $250 billion by 2035. The company aims to produce 40% of its DRAM in the United States and will move up part of its New York fabrication plant construction schedule. Lutnick’s message that he also wants Samsung and SK Hynix to invest locally is seen as a sign that the U.S. government is reviving pressure for local investment after a quieter period.

Pressure on Samsung and SK Hynix to Invest in the US

Since 2025, the United States has imposed reciprocal tariffs and temporary import surcharges. Semiconductors are currently excluded, but the U.S. government has suggested it could impose tariffs of up to 100% on all semiconductor imports. Earlier this year, President Donald Trump pressured memory chipmakers to invest in the United States, saying companies that do not build plants domestically could face 100% tariffs.

With Samsung and SK Hynix recently announcing a combined 800 trillion won investment plan in South Korea, industry observers said pressure for additional U.S. investment could grow. Lutnick’s latest comments were seen as moving in that direction. Similar views have emerged overseas, with Japan’s Nikkei suggesting that the U.S. administration could raise monopoly concerns and demand relocation or investment in the United States due to Samsung and SK Hynix’s combined 60% market share in the global memory market.

Analysts’ Views on the US Chip Market

Some analysts have raised concerns that large artificial intelligence data center operators, known as hyperscalers, could slow the pace of investment. However, industry officials still expect supply and demand to begin moving toward balance no earlier than 2028.

Industry officials expect supply and demand to begin moving toward balance no earlier than 2028. The call for production investment in the United States may indicate that memory semiconductors remain in short supply despite debate over whether the chip market is nearing a peak.