Micron Technology, the world’s third-largest storage chip manufacturer, announced last week that it will build a second storage chip factory in Idaho, expand facilities in Virginia, and transfer advanced packaging technology for AI critical high bandwidth memory (HBM) to the United States, with an additional investment of $30 billion. Combined with $50 billion in domestic R&D investment and the New York State “Gigafactory” program, Micron’s total investment amounts to $200 billion.

At present, almost all of Micron’s DRAM products are produced overseas. The company has stated its goal to transfer 40% of its DRAM production capacity to the United States, but has not provided a specific timeline. This is another semiconductor company that has responded to the Trump administration’s call to increase investment in the United States, following TSMC and Gexin.

Handel Jones, CEO of International Business Strategy Company, pointed out that Micron’s factory in Clay Town, New York will face cost competitiveness issues: “The region lacks professional talents in DRAM manufacturing, and Micron will need to find production bases in other parts of the United States or overseas in the future. In the HBM field, Micron still needs to catch up with SK Hynix and cope with competition from Samsung’s new wafer fab in Taylor, Texas.”

TechInsights Vice Chairman Dan Hutcheson believes that these investments are partly due to subsidies under the Chip Act and government pressure, but companies still need to consider investment returns. The current investment model is influenced by geopolitical factors such as tariffs and the uncertainty of the ‘One China’ policy. About 60% of Micron’s DRAM is produced in the Taiwan Strait region.

Micron CEO Sanjay Mehrotra stated that the investment will solidify America’s technological leadership, create tens of thousands of jobs, and ensure the security of the semiconductor supply chain. The company is expected to qualify for the “Advanced Manufacturing Investment Tax Credit” aimed at boosting the local chip industry and has received funding support from federal, state, and local levels, including $6.4 billion in the Chip Act grants.

Jones pointed out that the Trump administration may redistribute the chip subsidies promised by the Biden administration at the end: “The current administration believes that tariffs are enough to protect the semiconductor industry, and the approval of new funds is also constrained by trillion dollar fiscal deficits.” The new tariff policy may impose tariffs of more than 25% on imported DRAM, which also becomes a potential driving force for Micron’s return.

NVIDIA CEO Huang Renxun expressed support for the plan, stating that Micron’s HBM technology is crucial to the AI ecosystem. The US Department of Commerce stated that it will simplify the approval process and accelerate investment landing. The Trump administration has relaxed policy restrictions on projects in Idaho, New York, and Virginia during the Biden era.