Trade groups warn US gov't of strain in chip supply on AI boom
A memory chip shortage driven by artificial intelligence demand is posing risks to sectors like consumer electronics and automobiles, trade groups warned Wednesday, as they called on the Trump administration to help boost supplies.
"Expanding artificial intelligence (AI) data centers consume an enormous share of available memory chip capacity," said the coalition of nine trade groups.
This has caused a surge in chip prices and reduced supply for manufacturers.
It could threaten higher consumer costs and supply chain disruptions, they added, in a letter addressed to U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.
