Semiconductor industry group (SK Hynix, Samsung, Micron, SEMI) lobbies US administration against domestic-content mandates on memory chip supply.

Memory chip manufacturers are discouraging the government from intervention in the industry. The SEMI industry association, which includes top memory chip manufacturers Micron, Samsung, and SK hynix, has written a letter to the Trump administration urging against any intervention in the memory market that would influence prices or production capacity, arguing that it will worsen the shortage.

The letter came after Senator Bernie Moreno (R-Ohio) wrote to Commerce Secretary Howard Lutnick in April, asking the government to take steps "to ensure that the U.S. auto industry is fully supplied with memory chips" in response to projected shortages impacting the auto sector. However, the industry group opposes this approach. "While targeted policies can support accelerating domestic supply resilience, interventions that distort pricing or capacity decisions risk prolonging the demand downturn," SEMI stated. "Current market conditions are being addressed through investments in American manufacturing and an increasing focus on long-term purchase agreements."

SEMI offered an alternative solution rather than government market intervention. Instead of enabling new competitors to enter the U.S. market—as Apple is attempting by lobbying to purchase memory chips from blacklisted Chinese firm CXMT—the group suggested that the administration work with Congress to pass tax deductions or credits on consumer electronics, offsetting the rising prices caused by the chip shortage.

The underlying challenge is one of timing. Memory manufacturing capacity is expected to increase by around 19% annually, but these new facilities will take years to come online. Demand for memory chips, primarily driven by AI hyperscalers, is expected to outstrip supply, with Samsung and SK hynix warning that shortages could last until 2027 or even longer.

Consumers are responding by seeking alternatives to expensive memory. Demand for slower, more affordable DDR4 has surged, prompting companies to restart production of DDR4 motherboards and memory kits. Despite this, most consumers are simply delaying planned upgrades—reflected in a 7% drop in PC purchases in the first quarter of 2026, with experts estimating a total decline of 14% in annual deliveries, the biggest market contraction in the last three years.