Samsung, SK Hynix Urged to Expand US Memory Chip Manufacturing

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Samsung and SK Hynix are facing fresh pressure from the US over their semiconductor operations. The two Korean giants are being urged to expand their chip manufacturing footprint stateside. This comes as demand for AI memory chips rises and the US pushes to reduce its dependence on overseas production.

US seeks expanded chip production from Samsung, SK Hynix

At an event hosted by Micron, an American-based memory maker, US Commerce Secretary Howard Lutnick urged Samsung and SK Hynix to expand chip production in the US. He said he has been holding talks with both Korean memory maker about their US operations, though he did not share details.

Industry watchers believe that the US wants the two companies to make cutting-edge memory chip-making plants stateside. This seems to be in addition to their current investment plans. Lutnick acknowledged that Micron may not welcome the expansion of its rivals in the US. However, he said the country needs a solid semiconductor supply chain.

This came after Micron announced plans to invest about $250 billion in US chip manufacturing through 2035. Samsung is currently building a semiconductor hub in Taylor, Texas, where it aims to make advanced AI chips, including Tesla’s AI6 chips. Meanwhile, SK Hynix plans to create an advanced packaging facility and an AI memory research and development center in Indiana.

However, the plants do not include DRAM or NAND flash memory chips, which play a key role in AI servers, data centers, and high-performance computing systems. If Samsung and SK Hynix build memory chip factories in the US, they could help increase local production of these chips.

“Both chipmakers will face an increasing dilemma over the possible investment in the US, as they seek to safeguard access to the world’s largest technology market,” said an industry official. “However, it will be realistically unfeasible for both firms to immediately come up with additional investment plans in the US., as they recently confirmed massive investment plans for their home country.”

Written by

Binay Konwar

Binay Konwar started his blogging journey in 2014 and has since written plenty of tech articles. At present, he is working as a News Writer at SammyGuru, covering everything about Samsung. He holds a Master's degree in Mathematics, but his real passion lies in tech and writing. In his free time, he enjoys playing chess and watching movies.

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