Commerce Secretary Warns Memory Chipmakers of 100% Tariffs Unless Manufacturing in U.S.
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Tariff Threat: Commerce Secretary Howard Lutnick warned that memory chipmakers, including those from South Korea and Taiwan, could face 100% tariffs on imports unless they enhance manufacturing capabilities in the U.S., directly impacting their market competitiveness.
- Investment Requirements: During the ceremony for Micron Technology's (MU) $100 billion manufacturing site, Lutnick emphasized that chipmakers must choose to build in America or face hefty tariffs, compelling companies to reconsider their global supply chain strategies.
- Trade Agreement Impact: Lutnick noted that a new trade agreement with Taiwan would provide quota-based tariff relief for Taiwanese firms committed to new chip production sites in the U.S., a policy that could also affect South Korean chipmakers' market access.
- Policy Context: This tariff policy is viewed as an industrial strategy by the U.S. aimed at boosting domestic manufacturing and ensuring competitiveness in the global semiconductor supply chain, which may also lead to heightened tensions in international trade relations.
Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 228.21 USD with a low forecast of 170.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
26 Buy
3 Hold
0 Sell
Strong Buy
Current: 336.630
Low
170.00
Averages
228.21
High
325.00
Current: 336.630
Low
170.00
Averages
228.21
High
325.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
