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A.I.-Driven Chip Crunch Leads to New Rush of Lobbying in Washington
The New York Times • • business
Key Points:
- The surge in artificial intelligence development has led to a significant shortage and price increase in memory chips, essential components used in devices from smartphones to cars.
- The price of memory chips has quadrupled over the past year, posing challenges for the White House in managing inflation perceptions.
- Various industries, including medical devices, automotive, and consumer electronics, are lobbying the government for assistance in securing memory chip supplies.
- Proposed solutions include federal policies to require chipmakers to allocate more chips to diverse industries and conditions on funding from the 2022 CHIPS and Science Act to ensure broader chip distribution.
- Some companies have even requested that the government invoke the Defense Production Act to prioritize chip allocation beyond A.I. applications.
