Trade Groups Warn AI Boom Causes Memory Chip Shortage

A coalition of nine trade groups, including the Alliance for Automotive Innovation, National Retail Federation, and Medical Device Manufacturers Association, warned the U.S. government that the artificial intelligence boom is causing a critical memory chip shortage. In a joint letter sent Wednesday to Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, the groups stated that the expansion of AI data centers consumes a disproportionate share of chip capacity.

The industry groups warned that this market imbalance threatens American supply chains and could lead to significant, sustained price increases for consumer electronics, vehicles, and medical devices. The coalition called on the administration of President Donald Trump to support the expansion of domestic chipmaking capacity to ensure all market segments are served.

Chey Tae-won, chair of SK hynix’s parent company, estimated that these shortages could persist until 2030 because of the extensive time required to construct new semiconductor factories.