Ranking Member Khanna Seeks Answers from Commerce on Rising Consumer Electronics Prices Amid Memory Chip Shortage

WASHINGTON – Rep. Ro Khanna (CA-17), Ranking Member of the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party sent a letter to Commerce Secretary Howard Lutnick seeking answers about the Administration's response to a global memory semiconductor shortage that is driving up the cost of consumer electronics and could increase reliance on Chinese chipmakers.

“The Biden Administration had a successful strategy to address the forthcoming memory chip shortfall through the CHIPS and Science Act,” Khanna wrote in the letter. “Working with American companies and companies based in allied countries alike, the CHIPS and Science Act represented America’s most decisive step yet towards onshoring chip production, and by extension, ensuring the affordability of consumer devices and creating jobs.” 

Khanna points to reports that the Commerce Department may be delaying or reconsidering previously awarded CHIPS and Science Act funding for companies including Samsung and SK Hynix, creating uncertainty for manufacturers at a time when demand for memory chips is surging due to artificial intelligence. He warns that if U.S. and allied companies cannot meet demand, manufacturers could increasingly turn to Chinese suppliers, posing economic and national security risks.

The Ranking Member requests a response from the Commerce Department by August 15, 2026, including whether CHIPS Act awards are being delayed or modified, and how the Department plans to address both memory chip shortages as well as rising prices for consumer electronics.

Read the letter here.

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