US Commerce Secretary Unveils Tougher Semiconductor Trade Policy, Micron to Invest $200 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Yahoo Finance
- Policy Framework Upgrade: US Commerce Secretary Howard Lutnick outlined a tougher semiconductor trade policy during the groundbreaking ceremony for Micron's new plant in New York, suggesting that South Korean and Taiwanese chipmakers without significant US investment could face tariffs up to 100%, compelling these companies to consider expanding production in the US to avoid steep levies.
- Micron Investment Commitment: Micron has pledged to invest up to $200 billion in the US, with $150 billion allocated for manufacturing and $50 billion for R&D, making the Clay project its largest domestic investment to date, which underscores the company's strategic positioning in the US semiconductor market and confidence in future demand.
- Positive Market Reaction: Following the policy announcement, Micron's shares rose 7.8% on Friday, extending a 27% gain this month, reflecting investor optimism about how trade policy could reshape global chip supply chains and further solidifying Micron's competitive position in the high-bandwidth memory market for AI data centers.
- International Cooperation Context: Trade agreements with Taiwan and South Korea provide context for Micron's strategy, with Taiwan committing to invest at least $250 billion in the US and South Korea establishing a $350 billion investment fund, although the scale of future spending by Samsung and SK Hynix remains unclear, these policies will influence the global semiconductor market landscape.
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 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 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.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 336.630
Low
235.00
Averages
336.12
High
500.00
Current: 336.630
Low
235.00
Averages
336.12
High
500.00
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.
