The American semiconductor corporation Micron has decided to increase its investment in the U.S. in line with the policies of former President Donald Trump. However, it appears that Micron will only increase its investments without any additional subsidies under the Semiconductor Support Act, raising concerns that the Trump administration could pressure Samsung Electronics and SK hynix to also expand their investments.
Micron announced on the 12th that it plans to expand its U.S. investment to $200 billion (approximately 274 trillion won). Of this, $150 billion (approximately 205 trillion won) will be invested in memory semiconductor manufacturing, which adds $30 billion (approximately 41 trillion won) to a previously announced investment plan, Micron explained.
Micron announced that it would invest a total of $125 billion (approximately 171 trillion won) to build semiconductor plants in New York and Idaho during the administration of former President Joe Biden, and the Department of Commerce decided in December of last year to provide Micron with $6.165 billion (approximately 8.4 trillion won) in Semiconductor Act subsidies.
Semiconductor Act subsidies are given to corporations investing in the American semiconductor industry to encourage domestic semiconductor production, and both Samsung Electronics and SK hynix signed subsidy agreements with the Biden administration.
On the same day, the Department of Commerce announced that it would provide Micron with up to $275 million (approximately 376.6 billion won) in additional Semiconductor Act subsidies in line with Micron's expanded investment. However, the $275 million is seen as a confirmation of an agreement reached with the Biden administration in December of last year, making it difficult to view it as an increase in subsidies.
President Trump has criticized the Semiconductor Act, arguing that if tariffs are imposed on semiconductors, corporations will invest in the U.S. without receiving subsidies. Secretary of the Department of Commerce Howard Lutnick noted during a congressional hearing on the 4th that some of the Semiconductor Act subsidies appeared 'excessively generous' and that he is renegotiating subsidies with some corporations.
Accordingly, there is speculation that the Trump administration may require Samsung Electronics and SK hynix to accept unfavorable conditions, such as additional investments without increased subsidies. The additional investment announced by Micron includes the construction of a second advanced memory semiconductor factory in Boise, Idaho, the expansion and modernization of its existing factory in Manassas, Virginia, and securing high-bandwidth memory (HBM) packaging capabilities. Micron also stated that it plans to invest $50 billion in research and development.