Lutnick urges Samsung, SK hynix to build memory chip plants in U.S.

The Donald Trump administration is intensifying its push to revive U.S. manufacturing, with U.S. Commerce Secretary Howard Lutnick publicly urging Samsung Electronics and SK hynix to build memory semiconductor production facilities in the United States.

The demand came shortly after the two companies announced a combined investment plan of about 800 trillion won ($532 billion) in Korea's Honam region — which refers to Gwangju and Jeolla provinces — fueling concerns that Washington is openly pressing global chipmakers to shift their supply chains to the United States.

Lutnick said he wants to bring Samsung and SK hynix to the United States to build memory chip fabrication plants, according to Bloomberg on Thursday.

The remarks came during his visit to Micron Technology's concrete pouring ceremony for a fabrication plant construction site in New York.

He added that discussions with the Korean companies are underway but declined to provide further details, according to Bloomberg.

On the same day, Micron Technology announced it would increase its planned U.S. investment to $250 billion, up from the previously proposed $200 billion, by 2035. The company aims to manufacture 40 percent of its dynamic random-access memory (DRAM) output in the United States and create more than 90,000 jobs. The investment includes facilities in New York as well as expanded production in Idaho and Virginia.

The Trump administration is seeking to raise the U.S. share of global semiconductor manufacturing from roughly 12 percent to as much as 40 percent. After using U.S. firm Micron Technology's expansion as a foundation, Washington is now turning its attention to Korean companies that dominate the global memory market.

"Micron is leading the way, and the competitors are going to be jealous and ultimately have no choice but to follow," he said, according to Bloomberg.

Both Samsung and SK hynix already have major semiconductor investments in the United States.

Samsung is investing about $37 billion in an advanced foundry complex in Taylor, Texas, where it plans to begin mass production using its 2-nanometer process next year.

SK hynix is also investing $3.87 billion in an advanced semiconductor packaging plant in Indiana.

However, industry sources reportedly believe Washington ultimately wants memory chip production, such as DRAM wafer fabrication, to move to the United States. For Korean chipmakers, however, building such plants in the United States would mean higher construction and labor costs, along with concerns that proprietary manufacturing technology and production expertise could be transferred overseas.

Advanced memory chips such as high bandwidth memory are also subject to Korea's national security restrictions on key technologies, which limit companies' ability to expand production overseas.

Although more global technology companies are requesting local U.S. production, securing economic viability remains difficult, industry sources explained.

Some analysts also believe Washington's latest pressure followed the announcement on June 29 that Samsung and SK hynix plan to invest a combined 800 trillion won in Korea's Honam region.

"The Trump administration, which places protectionism and strengthening domestic manufacturing at the top of its agenda, is unlikely to welcome large-scale investment expansion in Korea by Korean semiconductor companies," Kim Dae-jong, a professor at the School of Business in Sejong University, said. “The United States is likely to step up pressure through additional investment demands as well as tariffs and subsidies."

BY KIM SU-MIN [[email protected]]