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Micron Expands US Investment by $30 Billion Amid Trump’s Onshoring Push

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Micron Technology announced on Thursday a significant expansion of its U.S. investment plans, adding $30 billion to its existing commitments as President Donald Trump intensifies efforts to bring semiconductor manufacturing back to American soil. The memory chip maker now projects total investments of $200 billion, up from previous plans of approximately $125 billion.

The new funding will support the construction of a second cutting-edge memory fabrication facility in Boise, Idaho, and the expansion of its manufacturing site in Manassas, Virginia. “These investments are designed to allow Micron to meet expected market demand, maintain share and support Micron’s goal of producing 40% of its DRAM in the U.S.,” the company stated.

Micron’s DRAM chips are widely used in personal computers, automotive systems, industrial equipment, wireless communications, and artificial intelligence. The company’s High-Bandwidth Memory (HBM) products are seen as essential for powering next-generation AI models. About $50 billion of Micron’s total investment will be dedicated to research and development.

President Trump’s administration has pushed hard for semiconductor onshoring, with Trump threatening new tariffs on chip imports and reconsidering previous subsidies granted under former President Joe Biden. In December, Micron secured nearly $6.2 billion in government subsidies through Biden’s $52.7 billion 2022 CHIPS and Science Act. Trump’s administration is now renegotiating some of those grants, according to Commerce Secretary Howard Lutnick.

The expansion aligns with broader trends in the U.S. semiconductor industry. Nvidia, a key customer of Micron, announced plans in April to build AI servers worth up to $500 billion in the U.S. over the next four years, in partnership with firms such as Taiwan’s TSMC. “Micron’s investment in advanced memory manufacturing and HBM capabilities in the U.S., with support from (the) Trump administration, is an important step forward for the AI ecosystem,” said Nvidia CEO Jensen Huang.

Micron also finalized a $275 million direct funding award under the CHIPS Act to further support its Manassas facility expansion.

US Warns Huawei Can Produce No More Than 200,000 AI Chips in 2025, But China Is Catching Up

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Huawei Technologies will likely produce no more than 200,000 advanced artificial intelligence chips in 2025, according to Jeffrey Kessler, Under Secretary of Commerce for Industry and Security at the U.S. Commerce Department. While this figure falls short of meeting China’s growing demand, Kessler cautioned that China is rapidly narrowing the technological gap with the United States.

Speaking before the House of Representatives Foreign Affairs South and Central Asia subcommittee on Thursday, Kessler emphasized that the production limitations do not mean the U.S. can become complacent. “China is investing huge amounts to increase its AI chip production, as well as the capabilities of the chips that it produces. So, it’s critical for us not to have a false sense of security,” he warned.

Since 2019, Washington has implemented a series of export controls restricting Huawei and other Chinese firms’ access to high-end U.S. chips and manufacturing equipment. These curbs aim to slow China’s progress in critical technologies and prevent potential military applications. Despite these hurdles, Huawei plans to supply its domestically produced Ascend 910C AI chips to Chinese customers as an alternative to Nvidia’s more advanced products.

White House AI Czar David Sacks recently stated that China is only 3-6 months behind the U.S. in AI model capabilities. However, he clarified that Chinese AI chip hardware remains about one to two years behind leading U.S. competitors such as Nvidia. Huawei’s CEO Ren Zhengfei also acknowledged the gap, noting that the company’s chips trail behind U.S. products by a generation, though Huawei continues to invest more than $25 billion annually to advance performance.

While Huawei is expanding its AI chip output, U.S. export controls have hampered Nvidia’s ability to maintain its market dominance in China. Recent trade negotiations between the U.S. and China in London resulted in a tentative truce, yet tensions persist, especially after the Trump administration imposed new export controls on semiconductor design software, jet engines for Chinese aircraft, and other critical technologies.

During the congressional hearing, Democratic Representative Greg Meeks raised concerns about the Trump administration’s approach, suggesting it has blurred the lines between export control policy and broader trade issues. Kessler reassured lawmakers that export controls remain robust and effective, while also stressing that the Commerce Department will continue to actively monitor and adjust regulations as the technology landscape evolves.

At present, there are no immediate plans for further restrictions on U.S. semiconductor sales to China, though officials remain vigilant about developments in China’s domestic semiconductor sector.

Nvidia to Exclude China from Financial Forecasts Amid U.S. Export Restrictions

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Nvidia will stop factoring in revenue and profit from the Chinese market in its financial forecasts, CEO Jensen Huang told CNN on Thursday, citing ongoing U.S. trade restrictions on chip sales to the region. The decision comes as the U.S. maintains stringent export controls that limit Nvidia’s ability to sell its advanced chips to Chinese customers.

When asked if the ongoing trade discussions between the U.S. and China could lead to a lifting of export controls, Huang said he was not counting on any changes:

“If it happens, then it will be a great bonus. I’ve told all of our investors and shareholders that, going forward, our forecasts will not include the China market.”

Huang reiterated his criticism of U.S. chip export curbs, arguing that they are not achieving their intended policy objectives. “The goals of the export controls are not being achieved,” he said. “The goals have to be well-articulated and tested over time.”

According to D.A. Davidson analyst Gil Luria, Nvidia may face downside risks for 2026 if it remains unable to resume sales to China. Nvidia’s China business remains significant: in the first quarter, China accounted for 12.5% of the company’s total revenue, generating $4.6 billion largely from customers stockpiling the H20 chip before the restrictions took full effect.

The company estimates the export curbs cost it $2.5 billion in lost sales in Q1, with an $8 billion revenue hit projected for Q2. Nvidia is still exploring limited options for the Chinese market but acknowledged:

“Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50 billion data center market.”

Michael Ashley Schulman, CIO at Running Point Capital, said Nvidia’s move to exclude China from its forecasts simplifies its financial outlook:

“By zero-basing China, Nvidia removes a volatile variable that neither Wall Street nor the Commerce Department can reliably handicap.”