NCTA-led groups warned of US memory chip shortage on June 3

TL;DR

• On June 3, 2026, a coalition including NCTA, ACA Connects, NTCA, and the Telecommunications Industry Association sent a letter to U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick warning of a U.S. memory chip shortage.
• The groups said rapid expansion of AI data centers is driving an "unprecedented surge" in memory chip prices and reducing supply for manufacturing and consumer-facing industries.
• The letter said the shortage could raise costs for telecommunications infrastructure, electronics, automobiles, and medical devices, and could delay federal procurement work for small businesses.

On June 3, 2026, a coalition including NCTA, ACA Connects, NTCA, the Telecommunications Industry Association, MDMA, AdvaMed, the Alliance for Automotive Innovation, the Retail Industry Leaders Association, and the National Retail Federation sent a letter to U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick warning of a U.S. memory chip shortage.

The coalition said rapid expansion of artificial intelligence data centers is increasing demand for memory chips and causing what the letter called an "unprecedented surge in the price of memory chips and reduced supply of these chips for manufacturing and consumer-facing industries." The groups said market imbalances persist despite U.S. investment intended to expand chip manufacturing capacity.

The letter said the shortage could increase costs for everyday electronics and telecommunications infrastructure, while also affecting automobile production, medical device manufacturing, and federal contractors. The coalition asked the U.S. government to work with memory chipmakers and chip buyers, accelerate capacity expansion in the United States and allied countries, use trade and investment agreements to strengthen supply chains, and adjust regulatory frameworks to support faster sourcing and innovation.

Related questions

• Which trade associations signed the June 3, 2026 letter on U.S. memory chip supply?
• Which U.S. officials received the coalition's warning about memory chip shortages?
• What impacts did the coalition say memory chip shortages could have on telecommunications infrastructure and other industries?