Industry Group Urges Trump Not to Interfere in Memory Chip Shortage Crisis

The global semiconductor industry group SEMI has urged the United States government not to intervene in the ongoing memory chip shortage crisis by manipulating prices or production capacity, warning such actions could exacerbate the situation. In a letter to senior White House officials, the organisation, which represents major manufacturers, cautioned that distorting market mechanisms risks prolonging the current demand downturn. The crisis has severely impacted industries ranging from automotive manufacturing to consumer electronics, with memory chip demand reaching record highs due to the boom in artificial intelligence data centres. SEMI instead called for policies that support long-term purchase agreements and consumer-focused tax relief to offset rising device costs. The plea comes as major tech firms, including Apple, seek special licences to purchase memory components from blacklisted Chinese suppliers, highlighting the political sensitivity of the global chip shortage. Meanwhile, US lawmakers have expressed concerns that the supply crunch could cripple the automotive sector, echoing disruptions seen during the coronavirus pandemic. SEMI noted that while memory chip production capacity is projected to grow by approximately 19% annually, the surge in AI-driven demand will continue to outpace supply, creating persistent shortages for consumer laptops, smartphones, and home appliances.