Chipmakers urge White House to avoid broad memory market interventions

2026-07-03 · Source: AI – SiliconANGLE · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation, Cloud Computing & IT Infrastructure · Depth: Fundamental Awareness, short

Summary

A chip industry association, SEMI, has urged the White House to avoid broad interventions in the memory market, citing concerns that such moves would distort pricing and capacity decisions. This plea comes as memory prices have sharply increased over the past year due to surging demand from artificial intelligence data center builders, impacting sectors from servers to automotive and consumer electronics. S&P Global Inc. predicted vehicle DRAM could become 100% more expensive by the end of 2027, and Apple Inc. recently raised device prices. SEMI, representing major semiconductor equipment, materials, and chipmakers like Micron Inc., SK hynix Inc., and Samsung Electronics Co., recommends narrower measures such as tax deductions or credits for consumer electronics and promoting long-term purchase contracts. The industry expects to grow memory production capacity by 19% annually, with Micron investing \$200 billion in new fabs and HBM packaging, and SK hynix and Samsung planning to double capacity as part of a \$584 billion South Korean initiative.

Key takeaway

For supply chain managers or procurement professionals navigating volatile memory markets, you should prioritize evaluating long-term purchase contracts to stabilize costs and secure supply, as advocated by SEMI. Be aware that AI-driven demand will continue to pressure DRAM and HBM prices, potentially impacting your product costs and availability. Advocate for government incentives like tax deductions for consumer electronics to mitigate broader market impacts.

Key insights

Chipmakers warn against broad memory market interventions, advocating targeted measures and capacity expansion to address AI-driven demand and price surges.

Principles

• Broad market interventions distort pricing.
• Targeted tax incentives can stabilize consumer prices.
• Long-term contracts secure memory supply.

In practice

• Consider long-term memory purchase contracts.
• Investigate HBM for AI workloads.
• Monitor DRAM price forecasts for automotive.

Topics

• Semiconductor Industry
• Memory Market
• DRAM Pricing
• High-Bandwidth Memory
• AI Data Centers
• Supply Chain Management
• Government Intervention

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI – SiliconANGLE.