Cross-Sector Trade Association Memory Chip Letter to Treasury and Commerce

A coalition of trade associations representing broadband providers, medical device manufacturers, automobile manufacturers, and national retailers sent a letter to Treasury Secretary Bessent and Commerce Secretary Lutnick to express concern about “an urgent imbalance in the market for memory chips that could lead to significant and sustained near-term price increases for American households and disrupt critical U.S. supply chains.” They urge the Administration to:

• Support faster and larger expansion of memory chipmaking capacity in the United States and in allied jurisdictions;
• Utilize mechanisms under trade and investment deals struck by the Administration that commit partners to cooperate on supply chain resilience and invest in critical U.S. industries;
• Ensure that memory semiconductor capacity adequately serves all segments of the market, including consumer-facing and manufacturing industries;
• Examine whether the implementation of the CHIPS Act and related or similar programs can be utilized to advance the above objectives;
• Ease constraints on alternative sourcing or product redesign in response to memory chip disruptions, such as expedited validation and approval for regulated products and accommodation for any necessary changes to products’ hardware, firmware, or software;
• Identify and eliminate regulatory barriers to the growth of memory capacity domestically and in foreign jurisdictions to increase the aggregate stock of global memory supply; and
• Closely track conditions in the memory market, including with respect to supply and demand.

The letter was signed by NCTA—The Internet & Television Association, ACA Connects—America’s Communications Association, NTCA—The Rural Broadband Association, Telecommunications Industry Association, Medical Device Manufacturers Association (MDMA), AdvaMed, Alliance for Automotive Innovation, Retail Industry Leaders Association, and National Retail Federation.