Memory Chip Crunch Deepens as SEMI Warns Washington
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Memory Chip Crunch Deepens as SEMI Warns Washington Khac Phu Nguyen Tue, July 7, 2026 at 1:59 PM EDT 1 min read AAPL MU 000660.KS 005930.KS MSFT This article first appeared on GuruFocus . SEMI, the global semiconductor industry association representing chip manufacturers and equipment suppliers, has warned the Trump administration that attempts to influence memory chip prices or production capacity could possibly make the current supply squeeze worse. In a letter to senior officials, the semiconductor industry group urged the US to let companies continue signing long-term agreements with customers and extend tax breaks aimed at expanding domestic output. Micron Technology ( NASDAQ:MU ), SK Hynix ( HXSCL ) and Samsung Electronics ( SSNLF ) are among SEMI's members. Warning! GuruFocus has detected 3 Warning Signs with MU. Is MU fairly valued? Test your thesis with our free DCF calculator. The warning comes as AI data-center demand continues to absorb memory chip supply, putting pressure on industries from autos to consumer electronics. Apple ( NASDAQ:AAPL ) is seeking the Trump administration's approval to buy memory components from two Chinese companies on a Pentagon blacklist, while policymakers are also watching the impact of rising electronics prices after Apple and Microsoft raised prices on popular products. SEMI said memory capacity is expected to grow about 19% per year, but AI infrastructure demand could still outpace supply and limit availability for laptops, cars and appliances. The group suggested consumer-focused tax deductions or credits for phones and laptops as a possible way to ease price pressure, while warning that market interventions, including efforts to prioritize US customers, could risk prolonging the imbalance instead of fixing it.
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