Micron to pass on tariff costs to US buyers of memory products

New US tariffs have reportedly prompted Micron to raise prices on memory components. (Photo: Shutterstock)

Micron Technology will begin applying a tariff-related surcharge on selected memory products sold to US customers starting 9 April, according to a Reuters report citing four individuals familiar with the company’s plans. The move comes in response to newly introduced tariffs under US President Donald Trump’s latest trade measures.

Although the recent announcement by the US administration excluded semiconductors from the new tariff structure, products such as memory modules and solid-state drives (SSDs) have not been exempted. These products, used extensively in computing devices, automotive systems, and enterprise storage, fall within Micron’s portfolio and will be subject to a surcharge aimed at offsetting the additional costs associated with the new levies.

Micron conveyed the decision in a communication to its US clients, stating that the new trade conditions made the surcharge necessary. The company manufactures most of its products in Asian countries, including China, Japan, Taiwan, Singapore, and Malaysia, and those supply lines are likely to be impacted by the tariff changes.

The latest development follows a statement made by Micron executives during the company’s 21 March post-earnings call, where it was indicated that additional costs related to tariffs would be passed on to customers in affected categories. The surcharge is also separate from a price adjustment notice issued by Micron in late March, which the company attributed to a rise in unanticipated demand for its products.

TSMC under scrutiny over chip link to Huawei

In a separate development, Taiwan Semiconductor Manufacturing Company (TSMC) may face a penalty exceeding $1bn in connection with a US export control investigation. Reuters, citing individuals familiar with the matter, reported that the investigation concerns a chip designed by China-based firm Sophgo and manufactured by TSMC, which matched a component found in Huawei’s Ascend 910B AI processor. The processor’s inclusion of US technology could place TSMC’s involvement under the jurisdiction of US export control laws.

TSMC reportedly produced close to three million chips based on Sophgo’s design. Given the presence of US-made equipment in TSMC’s Taiwan-based operations, the company remains subject to restrictions that limit manufacturing for entities under US trade sanctions.

Meanwhile, data released by the International Data Corporation (IDC) showed global personal computer shipments totalled 63.2 million units during the first quarter of 2025, representing a 4.9% increase compared to the same period last year. IDC attributed the growth to continued demand ahead of the end-of-support timeline for Windows 10, as well as ongoing interest in devices equipped with on-device artificial intelligence capabilities.

Despite the quarterly growth, IDC noted that the global PC market faces operational challenges tied to trade uncertainties, cost pressures, and macroeconomic volatility. Analysts have cited potential impacts on demand planning and pricing strategies as companies respond to shifts in international trade policy and inflationary dynamics.

Read more: Micron raises revenue forecast as AI memory chip demand accelerates