Micron Technology Inc (NASDAQ:MU) will impose a tariff-related surcharge on select products starting Wednesday in response to new US trade levies, Reuters reported.
Shares of the memory chipmaker rose 5.3% in premarket trading.
According to the sources, the surcharge will apply to memory modules and solid-state drives (SSDs), which are not exempt under President Donald Trump's new tariffs.
The products are widely used in consumer electronics, automobiles, and data centers.
Micron, which manufactures extensively across Asia—including China, Taiwan, Japan, Malaysia, and Singapore—told US customers in a letter that it will begin passing on costs associated with the tariffs.
While semiconductors, a key part of Micron’s portfolio, were spared, memory and storage products are covered under the new trade measures.
The decision follows comments made by Micron executives on a March 21 earnings call, where they said the company intended to shift the burden of tariffs to customers in affected segments.
The tariff-related move also comes shortly after Micron informed customers in late March of upcoming price increases due to an uptick in "un-forecasted demand."