Chip Industry Warns Trump Against Intervening in Memory Market
The US semiconductor industry group SEMI has cautioned the Trump administration against intervening in the memory market, warning that such actions would worsen the shortage. The shortage, driven by the AI boom, has led to soaring prices for memory chips used in everyday products. The industry recommends extending tax breaks and allowing companies to sign long-term supply deals.
Key points
- SEMI, a US semiconductor industry group, has written to senior US officials warning against intervening in the memory market.
- The group argues that such interventions would deepen the shortage, which is driven by the AI boom and soaring demand for memory chips.
- SEMI recommends extending tax breaks for US memory makers and allowing companies to sign long-term supply deals with customers.
- The three major memory makers, Micron, SK Hynix, and Samsung, are members of SEMI and have seen their shares soar due to the shortage.
- The shortage has led to price increases for memory chips used in everyday products, including cars and laptops.
The US semiconductor industry group SEMI has issued a warning to the Trump administration against intervening in the memory market. In a letter to senior officials, SEMI argued that any attempts to fix the shortage by steering prices or production would only worsen the situation.
The shortage is driven by the AI boom, which has led to a surge in demand for memory chips. The three major memory makers, Micron, SK Hynix, and Samsung, are members of SEMI and have seen their shares soar due to the shortage. However, the shortage has also led to price increases for memory chips used in everyday products, including cars and laptops.
SEMI recommends a different approach to addressing the shortage. The group argues that extending tax breaks for US memory makers and allowing companies to sign long-term supply deals with customers would help to alleviate the shortage. By taking this approach, SEMI believes that the industry can work together to address the shortage and prevent further price increases.
Sources
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