A semiconductor industry organization has cautioned the Trump administration that government attempts to address the global memory chip shortage by influencing pricing or production capacity could worsen the historic supply constraints driven by the AI boom.

In a letter to senior US officials, the industry association SEMI urged the United States to permit companies to continue entering into long-term agreements with customers and to extend tax incentive policies designed to boost US output. The three major memory chip manufacturers—Micron Technology of Idaho, along with South Korea's SK Hynix and Samsung Electronics—are all members of SEMI. According to a copy of the letter seen by media, SEMI stated, "While targeted policies can support accelerating the enhancement of domestic supply resilience, interventions that distort pricing or capacity decisions could prolong periods of weak demand."

The group added, "Current market conditions are being addressed through investments in US manufacturing and an increasing focus on long-term procurement agreements." The letter, dated July 1, was addressed to Treasury Secretary Scott Bessent, Defense Secretary Pete Hegseth, Commerce Secretary Howard Lutnick, and Secretary of State Marco Rubio.