Semiconductor manufacturer Micron Technology is preparing to implement a tariff-related surcharge on certain products in response to the latest round of trade measures announced by President Trump. The new tariffs, set to take effect at 12:01 a.m. ET Wednesday, have prompted the memory chip giant to notify customers about upcoming price adjustments.
According to multiple sources with knowledge of the matter, Micron has informed its customer base through written communication that while semiconductors have been granted exemption from Trump’s recent tariff announcement, other key products in their portfolio will be impacted. Specifically, memory modules and solid-state drives (SSDs), which are crucial components in various applications from automotive systems to data center servers and laptops, will be subject to the additional charges.
The company’s manufacturing footprint spans multiple Asian countries, including facilities in China, Taiwan, Japan, Malaysia, India, and Singapore. These nations are among those targeted by Trump’s “Liberation Day” tariffs, with some facing substantial duty rates ranging from 10% to 34%. This comes in addition to a blanket 10% tariff on all imports that was implemented on Saturday.
The impact of these trade measures extends beyond Micron, as industry insiders indicate other manufacturers are taking similar steps. A senior executive from an Asian NAND module manufacturer, speaking to Reuters, confirmed their company would adopt a comparable approach for U.S. customers. The executive emphasized that manufacturers cannot absorb such significant tax burdens, stating plainly that shipments would be contingent on customers accepting these new tariff-related costs.
The situation reflects the broader implications of escalating trade tensions, particularly in the technology sector where supply chains are deeply integrated across multiple Asian nations. The new tariffs are forcing companies to make difficult decisions about cost allocation, with many choosing to pass the additional expenses directly to their customers.
The timing of these charges aligns precisely with the implementation of Trump’s targeted reciprocal tariffs, which are specifically aimed at countries with which the United States maintains its largest trade deficits. The measures represent a significant shift in trade policy, with potential ripple effects throughout the global technology supply chain.
For Micron, whose operations are extensively distributed across affected Asian territories, the tariffs present a particular challenge. The company’s diverse manufacturing presence in these regions means it faces multiple layers of impact from the new trade measures. The decision to implement surcharges indicates that the company, like many others in the industry, sees no viable alternative to passing these costs along the supply chain.
Trade data and analysis from Goldman’s research desk suggests these tariffs could have substantial implications for the technology sector’s cost structure. The situation is particularly complex for companies like Micron, which maintain intricate networks of suppliers and customers across affected regions.
The development marks a significant shift in how technology companies are managing the impact of trade policies, with the potential for broader implications across the industry. As companies begin implementing these new charges, the full impact of the tariff measures on both the technology sector and end consumers remains to be seen.