The U.S. semiconductor industry is showing both momentum and strain. Micron is enjoying strong gains as investors bet on AI memory demand, and supply chain commitments across dozens of states continue to expand. At the same time, China is targeting U.S. chipmakers with new trade probes and an Idaho fabrication plant is preparing for sale, reminding us that the ground under this sector is still shifting.
LA Semiconductor has started the process of selling its wafer plant in Pocatello, Idaho. The facility produces analog, digital, mixed signal, and MEMS chips on mature nodes from 1.5 microns down to 0.13 microns and includes large cleanroom and testing facilities. The decision highlights the challenges of keeping smaller domestic fabs viable.
Micron stock hit a record high ahead of its fourth quarter earnings report expected on September 23. Analysts say growth in high bandwidth memory for AI data centers is driving the surge, with forecasts calling for strong year over year gains.
China’s Ministry of Commerce has opened two investigations into U.S. analog chip exports. The inquiries focus on Texas Instruments, Analog Devices, and ON Semiconductor, which supply parts widely used in cars and industrial systems. Shares of these firms dipped as investors considered the impact.
The Semiconductor Industry Association reports that companies have committed more than six hundred billion dollars in new projects across twenty eight states. These include fabs, packaging plants, material suppliers, and toolmakers, and are seen as essential for strengthening national security and reducing reliance on overseas production.
The picture that emerges today is one of contrast. Strong demand for AI memory and a historic wave of investment are pushing the U.S. industry forward, while trade friction and the exit of smaller fabs show the limits of that momentum. The sector is not defined by a single story but by the tension between expansion, policy risk, and market reality.