The memory shortage has become a political problem in Washington. Now the chip industry has a message for the Trump administration: leave the market alone, or the squeeze gets worse.
The warning came in a letter from SEMI, a semiconductor industry group, to senior US officials. Any attempt to fix the shortage by steering prices or production would deepen it, the group said, as Bloomberg reported.
The crunch traces back to the AI boom, which is swallowing memory chips faster than makers can produce them.
SEMI’s argument is blunt. “Interventions that distort pricing or capacity decisions risk prolonging the demand downturn,” the group wrote, in a copy seen by Bloomberg. It wants the opposite approach. Let companies keep signing long-term supply deals with customers, and extend tax breaks that lift US output.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!The stakes are high for its members. The three big memory makers all belong to SEMI: Micron in Idaho, plus SK Hynix and Samsung of South Korea. Their shares have soared as AI demand outstrips supply.
