Moreno Calls to Restrict Sale of Memory Chips Abroad Until U.S. Auto Industry Fully Supplied

WASHINGTON - Today, Senator Bernie Moreno (R-Ohio) sent a letter to Commerce Secretary Howard Lutnick urging the administration to work closely with domestic memory chip manufacturers to ensure the American auto industry has the technology it needs to actively compete in the global market while protecting high-paying American manufacturing jobs. Senator Moreno warns that the U.S. has only one major designer and manufacturer of memory chips, leaving American industry heavily exposed to foreign competitors as analysts predict prices will sharply increase in 2026, potentially as much as 100%.

"The American people expect a trade policy that defends their jobs, industries, and future," wrote Senator Moreno. "That means fair trade on our terms, not free trade with foreign industries. Ensuring reliable access to critical inputs like memory chips is a necessary step toward meeting that expectation."

Read the full letter HERE or below.

April 14, 2026

The Honorable Howard Lutnick
Secretary
U.S. Department of Commerce
1401 Constitution Avenue, NW
Washington, D.C. 20230

Dear Secretary Lutnick,

Today, the United States faces increasing constraints in the domestic supply of memory chips. This shortage is driving up prices for American consumers across a wide range of products throughout the economy, including automobiles, household appliances, laptops, and smartphones. Currently, the U.S. has only one major designer and manufacturer of memory chips: Micron Technology ("Micron"). Outside of Micron, the leading producers of memory chips are foreign companies, primarily Samsung and SK Hynix. While both maintain a presence in the United States, they do not manufacture memory chips domestically. Instead, the vast majority of their production occurs in South Korea, with additional capacity in China. Although the U.S. imports significant volumes of memory chips from South Korea, access to chips produced in China is increasingly limited by U.S. export controls and national security policies. As a result, the United States lacks sufficient domestic memory chip manufacturing capacity to meet our own demand.

The consequences are immediate and severe, particularly for the U.S. auto industry. Memory chips are embedded in virtually every new vehicle, enabling core systems within electronic control units, supporting safety features like advanced driver assistance systems, and powering infotainment and navigation systems. As vehicles become more technologically advanced, their reliance on memory chips continues to grow. Without reliable access to these components, auto production slows, costs rise, and critical systems within cars cannot function as intended.

We saw this clearly during the 2020 chip shortage: assembly lines halted, vehicles sat unfinished, workers were furloughed, and prices for both new and used cars surged. Those disruptions took years to resolve. Without action, current market dynamics risk recreating those same conditions.

For Ohio, these higher prices and supply delays are particularly damaging. The auto industry is a cornerstone of the state's economy, supporting roughly 329,400 jobs-nearly one in ten-and contributing $41.43 billion to Ohio's gross state product, or 4.7 percent of GDP. Ohio is the nation's largest automotive parts producer and has the second-largest automotive workforce. When memory chip supply tightens, Ohio's economy feels it first and hardest.

According to S&P Global, memory chip prices could rise between 70 to 100 percent in 2026, while leading producers have acknowledged they cannot meet current demand. Auto manufacturers in Ohio are already warning that plants could go "line down" as early as May due to shortages. The result is clear: disrupted production, threatened jobs, and higher costs passed directly on to working families.

In this context, Micron plays a uniquely important role. As the only major U.S.-based manufacturer of memory chips. Micron anchors the domestic supply chain that supports the auto industry and broader manufacturing base. Yet the U.S. auto sector remains heavily exposed to global demand for memory chips.

This Administration has rightly prioritized onshoring production to shield America from global supply chain disruptions. Since President Trump took office, more than $4 trillion has been committed to U.S. manufacturing investment, with over 140 companies expanding operations. This includes Micron, which has announced plans to build two fabs in Idaho and four in New York, as well as expand its manufacturing facility in Manassas, Virginia for legacy memory chips-the type most commonly embedded in automobiles. However, these gains are undermined when critical inputs are not reliably available at home. When domestic industries are forced to compete for limited supply, production slows, prices rise, and the benefits of these investments are diminished.

For these reasons, I urge the Department of Commerce to work with Micron, Samsung, and SK Hynix to ensure that the U.S. auto industry is fully supplied with memory chips. Prioritizing domestic demand for these essential components will help stabilize prices and protect American jobs.

The American people expect a trade policy that defends their jobs, industries, and future. That means fair trade on our terms, not free trade with foreign industries. Ensuring reliable access to critical inputs like memory chips is a necessary step toward meeting that expectation.

I look forward to working with you to advance these America First policies.

Sincerely,

BERNIE MORENO
United States Senator