US-China Tariff Impact: Micron Price Hike & Potential Response from Rivals
14 April 2025 路 Uncategorized 路
Source: 路 https://technews.tw/2025/04/10/will-samsung-and-sk-hynix-follow-lead-price-hikes/
On April 2, President Trump announced reciprocal tariffs on a global scale; however, he later temporarily exempted all countries except China from these tariffs for up to 90 days. In response, Micron Technology, a US memory chip manufacturer, preemptively raised prices of DRAM modules and SSDs. The future remains uncertain as it is unclear whether Samsung Electronics and SK Hynix will follow suit.
According to Reuters, citing industry insiders, Micron informed its American clients that certain memory module products would see an increase starting April 9th. Whether this decision changes due to Trump鈥檚 recent policy shift remains unknown.
Business Korea reported that DRAM modules are typically traded as integrated components with NAND flash memory鈥攕uch as DIMMs (Dual Inline Memory Modules) and CAMM (Compression Add-on Memory Module)鈥攔ather than standalone chips. Similarly, SSDs, which integrate both types of memories, are sold as finished products; therefore, most semiconductor memory is subject to reciprocal tariffs.
Micron manufactures DRAM modules and SSDs in China, Taiwan, India, and Singapore before shipping them back to the US for sale. Without raising prices, its profitability would be significantly impacted.
Samsung Electronics operates factories in Daejeon (South Korea), Cheongju (South Korea) and Suzhou (China). SK Hynix maintains semiconductor packaging plants in Icheon (South Korea) and Chongqing (China).
Market research firm TrendForce suggests that the US reciprocal tariff policy could affect demand for various end products, potentially increasing inflation risks and dampening consumer confidence. With limited budgets, consumers may reduce spending on electronics like TVs and laptops.
In IT markets where business recovery was anticipated this year, companies might preemptively cut expenses in an uncertain market environment, delaying the recovery process. These pessimistic forecasts stem primarily from uncertainties within global supply chains rather than short-term demand declines; many firms likely shipped products ahead of time before tariffs took effect, resulting in better-than-expected first-quarter performance.
While Samsung鈥檚 strong Q1 results were partly attributed to this pre-shipping phenomenon, it may not persist beyond the second quarter. Despite a current boom in AI semiconductors centered around HBM (High Bandwidth Memory), concerns over tariff risks and global economic slowdowns remain significant. Both Korean giants are awaiting further clarification on US government policies regarding semiconductors before taking action.
(Lead image source: Micron)
According to Reuters, citing industry insiders, Micron informed its American clients that certain memory module products would see an increase starting April 9th. Whether this decision changes due to Trump鈥檚 recent policy shift remains unknown.
Business Korea reported that DRAM modules are typically traded as integrated components with NAND flash memory鈥攕uch as DIMMs (Dual Inline Memory Modules) and CAMM (Compression Add-on Memory Module)鈥攔ather than standalone chips. Similarly, SSDs, which integrate both types of memories, are sold as finished products; therefore, most semiconductor memory is subject to reciprocal tariffs.
Micron manufactures DRAM modules and SSDs in China, Taiwan, India, and Singapore before shipping them back to the US for sale. Without raising prices, its profitability would be significantly impacted.
Samsung Electronics operates factories in Daejeon (South Korea), Cheongju (South Korea) and Suzhou (China). SK Hynix maintains semiconductor packaging plants in Icheon (South Korea) and Chongqing (China).
Market research firm TrendForce suggests that the US reciprocal tariff policy could affect demand for various end products, potentially increasing inflation risks and dampening consumer confidence. With limited budgets, consumers may reduce spending on electronics like TVs and laptops.
In IT markets where business recovery was anticipated this year, companies might preemptively cut expenses in an uncertain market environment, delaying the recovery process. These pessimistic forecasts stem primarily from uncertainties within global supply chains rather than short-term demand declines; many firms likely shipped products ahead of time before tariffs took effect, resulting in better-than-expected first-quarter performance.
While Samsung鈥檚 strong Q1 results were partly attributed to this pre-shipping phenomenon, it may not persist beyond the second quarter. Despite a current boom in AI semiconductors centered around HBM (High Bandwidth Memory), concerns over tariff risks and global economic slowdowns remain significant. Both Korean giants are awaiting further clarification on US government policies regarding semiconductors before taking action.
(Lead image source: Micron)