In a direct push to secure America's artificial intelligence hardware pipeline, U.S. Commerce Secretary Howard Lutnick has publicly pressured South Korean semiconductor giants Samsung Electronics and SK Hynix Inc. SK Hynix (SKHY) to construct local AI memory fabs.
Speaking at a Micron Technology Inc. (MU) event, Lutnick signaled a reordering of the global tech supply chain, asserting that because U.S.-based Micron is aggressively scaling up domestic manufacturing, its Asian rivals will ultimately have "no choice but to follow" and invest on American soil.
Driving the AI Supply Chain Home
According to a report by South Korean media outlet Maeil Business, Lutnick confirmed he is actively discussing expansion plans with executives from both Samsung and SK Hynix.
Lutnick acknowledged that inviting foreign competitors onto U.S. soil might create domestic friction, noting that the Micron CEO "may not be thrilled about rivals increasing their investment in the U.S."
However, he emphasized that national priorities take precedence, stating that "strengthening America's semiconductor supply chain is more important" than individual corporate rivalries. The ultimate goal, he stressed, is "to protect U.S. companies and intellectual property created in the United States."
High-Stakes Geopolitical Reordering
The pressure arrives at a pivotal moment. SK Hynix will begin trading American Depositary Receipts (ADRs) on Nasdaq on Friday, July 10, to raise capital for capacity expansion.
Reports state that Samsung and SK Hynix collectively plan to invest $880 billion over the coming years to meet skyrocketing AI memory demands.
Lutnick also navigated geopolitical tensions regarding Apple Inc. (AAPL)'s pending request to source memory chips from Chinese firms like ChangXin Memory Technologies and Yangtze Memory Technologies Co. Ltd.
Cramer Says SK Hynix Is Worth Buying
On Mad Money Thursday, Jim Cramer called SK Hynix a major beneficiary of surging AI memory-chip demand.
"We know the memory chip business is on fire and if you're willing to accept the volatility, I think you could do a lot worse than this one," Cramer said.
Despite rallying massively since late 2022, he noted the stock remains attractively valued at roughly seven times expected earnings. "Their memory chips may sell at a huge premium, but the stock trades at a discount," he added.
