US memory chip manufacturers seek tax incentives amid AI-driven demand surge

Leading memory‑chip producers, including Samsung, SK Hynix and Micron, have asked the U.S. Department of Commerce for tax incentives to support the sector’s rapid growth. The industry group SEMI argues that direct government intervention on pricing or production allocation could worsen market imbalances, and instead urges longer‑term supply contracts and fiscal credits for consumer‑electronics purchases.

The push follows a sharp increase in demand for high‑bandwidth memory (HBM) driven by artificial‑intelligence data centres. Production capacity is expected to rise about 19 % annually, still lagging behind demand and keeping prices high through at least 2027. The shortage has already prompted PC makers to revert to cheaper DDR4 memory and raised concerns for automotive manufacturers that rely on advanced memory for modern vehicle electronics.

SEMI’s proposal emphasizes expanding existing investment plans and securing stable supply chains rather than imposing market‑distorting controls, aiming to ease price pressures for end users while sustaining the industry’s growth trajectory.