With Korea’s two major chipmakers already planning major domestic investments, the concern is that US pressure to invest could derail projects
SK Hynix’s chip fab being built in Yongin, Gyeonggi Province. (pool photo)
The Trump administration’s push to expand semiconductor investment in the US appears aimed at building advanced manufacturing hubs at home, thereby securing US dominance in the artificial intelligence chip supply chain.
In particular, as the US lacks sufficient domestic capacity to produce memory semiconductors — a key bottleneck in AI development — it appears to be stepping up efforts to attract investment and localize its supply chain.
As US pressure could dampen investment in Korea and disrupt companies’ strategic allocation of resources, experts argue that Seoul should simultaneously accelerate support for domestic production hubs while explaining its situation to Washington.
According to industry insiders on Thursday, the only memory facility currently operational in the US is Micron Technology’s fab in Manassas, Virginia. “Of total memory chips in the world, about 2% are manufactured in the US, all at our Manassas, Virginia facility,” the company’s website explains.
Following the Trump administration’s push to boost domestic production and investments in memory chips, Micron is expanding its Manassas fab and planning large-scale memory fabs in Boise, Idaho, and Clay, New York.
In contrast, Samsung Electronics and SK Hynix, the top two players in the memory semiconductor market, are investing in the US to build foundries (contract semiconductor manufacturing) and advanced packaging facilities.
The foundry fab Samsung Electronics is building in Taylor, Texas, is set to begin production at its first plant within the year.
SK Hynix’s packaging fab in West Lafayette, Indiana, had its groundbreaking ceremony at the end of August and has officially begun construction. This explains why the US is pressing for additional investments in memory manufacturing hubs, which it sorely lacks.
The US administration has become especially wary as China, its competitor in the race for AI dominance, significantly strengthened its memory production capabilities, with CXMT and YMTC emerging as the sector’s two main pillars.
Supply shortages are forcing leading American companies like Apple to turn to Chinese-made memory chips. The rapid spread of AI is also expected to drive demand for memory chips, further heightening the US’ urgency to expand and localize domestic memory production.
Against this backdrop, Korean semiconductor firms are closely monitoring developments under the Trump administration. While some companies have already announced their plans to invest in large-scale memory fabs in Yongin and the southwestern Honam region, they cannot afford to ignore the demands of one of the biggest buyers of memory chips.
“There are a considerable number of factors to consider when investing in the US: labor costs, cost competitiveness, how much companies can afford to invest, and concerns related to the leaking of technology,” said Lee Jong-hwan, a professor at Sangmyung University’s Department of System Semiconductor Engineering.
“Since it is realistically impossible for Korean companies to invest in semiconductor plants all at the same time, the Korean government should provide a thorough explanation of the situation to the US,” he suggested.
By Park Jong-o, staff reporter; Bae Ji-hyun, staff reporter
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