Micron has also announced an increase in its sales prices. The new US tariffs are forcing the brand to raise its selling prices. What’s more, given that all storage-related production is based in Asia, these new tariffs could have a significant impact on the market.
Micron raises its prices because of US customs duties!
For the most part, Micron has played the globalisation card up until now. Despite being an American company, it had production sites based in Asia, the aim being to take advantage of low labour costs in particular. Now, following the new tariffs, the company is seeing its Asian production taxed, which is reducing its profitability. So, either the company takes it upon itself or passes on the costs to its products – we’ll let you guess which it has chosen to do.
For example, automotive-related products, laptops and data centres will be affected. The same goes for assembled products such as storage solutions and RAM.
In absolute terms, the bulk of NAND and DRAM chip production is carried out in East Asia by Chinese, Korean and Taiwanese companies. These include Samsung, Sk Hynix, Armos-Senior and SanDisk, an alliance between American and Japanese companies. It’s easy to see why these tariffs are having a major impact on the market, especially as the United States is a major market for computer components.
We’ll keep you posted. It now remains to be seen how this increase will be passed on, and by how much!
