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The semiconductor industry organization SEMI sent a letter to senior officials of the Trump administration on July 1st, warning that the government's attempt to address the global memory chip shortage by influencing prices or production capacity would exacerbate the historic supply tension triggered by the artificial intelligence boom. SEMI urged the government to allow chip manufacturers to continue signing medium- and long-term supply agreements with customers and to extend tax incentives aimed at stimulating domestic capacity expansion in the United States. SEMI stated that current market conditions are being addressed through investments in domestic manufacturing in the United States and increased long-term purchase agreements. The world's top three memory chip manufacturers, Micron Technology, SK Hynix, and Samsung Electronics, are all members of SEMI.
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