📊Executive Summary

The article highlights a significant supply chain risk in the United States due to a global shortage of memory chips, exacerbated by the rapid growth of artificial intelligence (AI). Nine major industry associations, including those from automotive and medical sectors, have urged the government to take action to increase chip supply. The letter emphasizes that the AI boom is consuming memory chip capacity, leading to unprecedented price increases and supply constraints that threaten critical supply chains. Companies like Micron and SK Hynix are under pressure to prioritize high-bandwidth memory for AI applications, leaving other sectors facing shortages. The article calls for collaboration between the government and manufacturers to enhance domestic production capabilities, particularly in light of ongoing expansions by Micron in New York and Idaho. This situation poses immediate procurement challenges for industries reliant on memory chips, with potential price hikes and supply disruptions looming....