Trade associations representing broadband providers have warned the U.S. government that the ongoing memory shortage is causing “significant and sustained” price increases that threaten infrastructure upgrades.

The Telecommunications Industry Association (TIA), the Rural Broadband Association (NTCA), and America's Communications Association (ACA Connects) joined a cross-sector coalition writing to Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, expressing concern about “an urgent imbalance in the market for memory chips” that could hinder procurement obligations.

“Risks to large parts of the U.S. economy are occurring despite major U.S. investments in chip manufacturing intended to avoid precisely this type of supply chain disruption,” the groups wrote.

The trade associations called for the Trump administration to work with memory chipmakers and chip buyers to address the market imbalance.

The groups are calling for “faster and larger” memory chipmaking capacity expansions in both the U.S. and “allied jurisdictions.” They also want constraints on alternative sourcing eased, such as expedited validation and approval for regulated products.

U.S. lawmakers previously called for memory hardware to be added to chip export controls, while Secretary Lutnick has reportedly been pressuring South Korea-based SK Hynix and Samsung to build out manufacturing capacity in the U.S.

“Everyone who wants to build memory has two choices: they can pay a 100% tariff, or they can build in America,” Secretary Lutnick said earlier this year during a ceremony at the groundbreaking of a Micron facility outside Syracuse, New York.

Micron is the sole member of the "big three" memory makers to manufacture memory wafers in the U.S. Samsung and SK Hynix have American facilities in the works, having secured funding under the Biden administration’s CHIPS Act, though those sites would focus instead on logic chip production and advanced packaging, respectively.

While the Trump administration has been outwardly hostile to the CHIPS Act – with the President having previously referred to it as a "horrible, horrible thing" and "a waste of money" – the trade associations called for it to be examined as to whether it can improve the current memory plight.

“Our organizations stand ready to work with you to discuss solutions that may mitigate this quickly developing situation in the short, medium, and long term,” the letter reads. “We share the administration’s determination to bolster the strength of the U.S. economy, resilience of our supply chains, and prosperity of our citizens and businesses.”

The specter of the memory shortage continues to loom large, with lead times for hardware being pushed as far back as 2028.

Taiwan Semiconductor Manufacturing Co. (TSMC) CEO C.C. Wei last week warned demand for AI chips could exceed supply for several years. Wei’s comments added to the chorus from leaders from Hewlett Packard Enterprise (HPE) and Arista Networks who previously sounded the alarm bells over the situation and its potential knock-on impact on infrastructure buildouts.

The shortage does have its winners, however, with two of the big three memory makers seeing their market caps pass the $1 trillion mark following surging stock prices aligning with unprecedented demand.