Micron Technology (MU, Financial), a US-based memory chip manufacturer, has informed its American customers of an impending surcharge on certain products. This decision is a response to new tariff policies announced by former President Donald Trump. Although semiconductors are exempt from these tariffs, memory modules and solid-state drives (SSDs) are not, prompting Micron to pass these costs onto customers.
Micron's production facilities are primarily located in Asia, including China, Taiwan, Japan, Malaysia, and Singapore. In a recent communication, the company reiterated its strategy to offset tariff impacts by adjusting product prices, a stance initially revealed during a March earnings call.
The tariffs, announced by Trump, have sparked fears of a global trade war and economic downturn, leading companies worldwide to reconsider their pricing strategies. Starting Saturday, US customs began imposing a 10% tariff on imports from many countries, with higher tariffs ranging from 11% to 50% on certain nations, effective from Wednesday.
Other Asian NAND flash module manufacturers have adopted similar measures, informing US clients that they must bear the tariff costs themselves.
