Chipmaker Micron expects minimal impact to its business from President Trump’s tariffs on Chinese goods.
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“The $50 billion part of the tariff where the specific line items have been spelled out, when we look at that and as we understand it, we do not see any impact,” Micron CEO Sanjay Mehrotra said during an exclusive interview with FOX Business’ Liz Claman on Thursday.
The Trump administration’s 25% tariffs on Chinese goods go into effect July 6. The Boise, Idaho-based semiconductor company puts its U.S.-manufactured products into Chinese products, which then return to America for sale.
“We are optimistic that these negotiations going on between the two countries will ultimately be resolved in a positive way for all parties,” Mehrotra said.
Micron has seen a surge in its stock price after delivering better third-quarter earnings than expected.
Mehrotra said the company is dedicated to leveraging its technology and delivery execution.
“We at Micron are extremely focused on strengthening our cost competiveness and building a portfolio of high value solutions,” he said.
The chipmaker has grown its business by 40% in revenue on a year-over-year basis and announced a $10 billion stock repurchase program which begins in Micron’s fiscal-year 2019.
“We have great confidence in the future of the company and the markets that we are addressing and our capabilities,” Mehrotra said.