US Commerce Secretary Howard Lutnick has called on Samsung Electronics and SK Hynix to expand production of memory chips in the United States, aiming to ease a global shortage of components essential to AI development.
AI Memory Crunch · US Chip Policy
Washington Presses Samsung & SK Hynix to Build Memory in America
US Commerce Secretary Howard Lutnick is urging the two Korean giants to expand memory output on US soil as the AI boom drains supply — with a threatened 100% tariff and surging prices raising the stakes.
~70%
of global memory output goes to AI in 2026
+60%
DRAM price rise in 2025, more forecast for 2026
100%
tariff floated in Jan 2026: build in US or pay
Where the Memory Goes in 2026
Global memory output allocation — AI accelerators now dominate
Reallocating DRAM wafers to AI has tightened supply of standard DRAM and NAND.
SK Hynix Rides the HBM Wave
57–58%
share of the world HBM market
$15B
planned advanced-memory investment in 2026
~$29B
raised via a US Nasdaq listing
2026 output is said to be nearly sold out under multiyear contracts — while Samsung & SK Hynix keep only limited US production, with Micron the lone major US-soil maker (building a large New York plant).
Prioritize US Supply
Automakers warn of line stoppages and higher vehicle prices. Senator Bernie Moreno asked Lutnick to prioritize memory for US carmakers.
Against Intervention
Industry group SEMI opposes government meddling in price and output — warning it would worsen the shortage — and backs long-term contracts and tax incentives instead.
Outlook: Industry executives warn the shortage may persist beyond 2027 — meaning the tug-of-war over expanding US production is set to continue.
Continue reading The rest of this article is for AI News Blitz readers. Choose an option below to keep reading.
Already purchased? Sign in ✓ Signed in — this article isn’t included in your current plan.Unlocking the full article…