Vanderbilt Report Proposes Defense Production Act Controls for AI Chip Demand

A report from Vanderbilt University's Policy Accelerator says rising AI demand is increasing memory chip prices and affecting the cost of computers, vehicles and medical devices. The report proposes using the Defense Production Act of 1950 to secure chip supplies for industries outside AI.

The proposed measures include giving non AI sectors priority access to scarce chips, creating a buyers' group for those sectors and requiring chipmakers to reserve part of their supply for non AI customers.

The report argues that maintaining broad access to memory chips qualifies as a national defense purpose under the law. It also proposes government support to accelerate construction and expansion of chip plants.