AI data centers are about to push up the cost of laptops, smartphones, cars and other everyday gadgets as chipmakers divert scarce memory‑chip capacity to high‑bandwidth AI processors.
Report warns of rising consumer prices
The Abundance Institute’s new policy brief says manufacturers are shifting DRAM production toward high‑bandwidth memory (HBM) for AI data centers, tightening supply for conventional chips used in consumer devices.
Former Rep. Patrick McHenry, R‑N.C., told Fox News Digital that the squeeze is already raising prices for average technology, because cutting‑edge chips are prioritized over lower‑value components.
Supply chain reshaping adds short‑term cost pressure
McHenry argues that reshoring and friendshoring efforts to move production out of China are creating temporary bottlenecks and higher costs for consumers.
He adds that the most advanced chips used for frontier AI models deserve national‑security protection, while lower‑end memory chips should remain freely tradable to keep everyday product prices down.
Policy call to the FTC
The report calls on the Federal Trade Commission to study how major chipmakers allocate capacity between DRAM and HBM.
McHenry notes the current shortage differs from the COVID‑era semiconductor crunch because it is driven by AI data‑center demand, yet the result — higher prices, longer wait times and limited product availability — will affect households for years.
He believes the short‑term price burden will ease within five to eight years as U.S. and allied chip production ramps up, delivering better choices and lower costs for American consumers.
