Overview
- The trade groups, which sent a letter to the Treasury and Commerce departments on June 3, 2026, said an urgent imbalance in the memory-chip market is already raising prices and disrupting U.S. supply chains.
- Signatories include the Alliance for Automotive Innovation, the National Retail Federation, the Medical Device Manufacturers Association, NCTA, and the Telecommunications Industry Association, representing auto, retail, medical and telecom firms.
- Industry forecasts and the letter say AI data centers could consume roughly 70% of global memory-chip output by the end of 2026, concentrating demand on high-bandwidth memory and high-performance DRAM.
- DRAM prices surged about 60% in 2025 as major manufacturers such as Micron, Samsung and SK Hynix shifted capacity to higher-margin AI-optimized memory, leaving less commodity memory for phones, autos and other products.
- The groups asked the government to speed policy responses — including faster CHIPS Act support, trade adjustments, or pressure on producers to rebalance output — noting that CHIPS-funded fabs will not relieve shortages for several years.