Micron and SK Hynix emerge stronger after tapping Chips Act funds - Crypto Briefing

Following receipt of funding under the U.S. CHIPS Act, both Micron Technology and SK Hynix have emerged as stronger players in the semiconductor industry. Micron secured up to $6.44 billion in direct ... Read original →

The CHIPS Act funding is reshaping the global memory chip landscape. Micron and SK Hynix are leveraging subsidies to accelerate AI memory production, particularly in High Bandwidth Memory (HBM), creating a technological synergy that undermines traditional supply chain advantages held by South Korean and Japanese players. This shift forces competitors like TSMC and Samsung to accelerate advanced process investments to maintain competitiveness. Reduced compliance costs enhance their capital flexibility, especially amid U.S.-China tech decoupling, with domestic manufacturing strategies boosting supply chain resilience. In the near term, market dynamics suggest that Infineon and other players may follow suit, triggering a new round of capacity expansion. Over the next 12 to 24 months, rising AI compute demand will likely elevate HBM pricing, putting pressure on manufacturers in China Taiwan/ Taiwan, China and South Korea who fail to scale up in time.