Republicans are warning that their ability to deliver on lowering everyday costs, one of their core campaign promises heading into the , is being tested by an AI-driven chip shortage that has spilled into consumer markets.
“When you have a big race like we have with AI, there are secondary effects that we need to be very concerned about,” former Rep. Patrick McHenry, who served as House Financial Services Committee chairman, told Fox News Digital, adding, “It is hurting Republicans.”
Tech industry reports have for months been raising alarm over a global chip shortage. In January, a report predicted that this year, 70% of the high-end memory chips produced would go toward data centers, which store AI memory, constraining all other downstream technology and driving up prices, directly undermining Republicans’ affordability agenda.
“We see this from our handheld devices to our computers, to TVs,” McHenry, a North Carolina Republican congressman turned policy advisor, said in an interview. “Even autos are impacted, and even things such as what we think of as average everyday things that arent particularly high tech, like the things we use to manicure our lawns are impacted by rising prices of chips, so theres a lot of secondary effects across consumer goods and should be a huge concern.”
Heading into 2026, President framed the midterms as a referendum on cost of living, saying in a Politico interview the elections “will be about pricing.”Â
Historically, the party in control loses seats during the midterms. One Republican strategist told Fox News Digital that AI’s well-documented dominance over the chip market should be viewed as hurting voters’ pocketbooks. The strategist called on the three largest chip manufacturing companies to expand production, which he said would help bolster the GOP’s campaign message.
“America must win the artificial intelligence race. Companies like Samsung, SK Hynix, and Micron understand that,” the strategist said. “At the same time, we cant forget about consumer goods. Memory chip manufacturers need to increase production to boost both American AI and lower the cost of consumer goods. If they dont, it will undoubtedly hurt Republicans politically in the midterms. How can Republicans campaign on ‘lower costs’ in 2024, but see computer and car prices rise in 2026 due to a lack of chip production?”
The AI boom is increasing demand for memory chips, which are semiconductor components used in data centers, laptops and smartphones.
That chip consumption has rippled across industries. Microsoft this month attributed its rise in laptop prices to “recent increases in memory and component costs.” The smartphone market remained “under pressure,” with shipments down 6% this year, largely because of chip shortages, Counterpoint Research found.Â
Sen. Bernie Moreno, R-Ohio, previously a car dealership owner, warned in a letter this month his state was seeing “immediate and severe” consequences of rising chip prices and that automakers have said they could begin halting assembly lines as early as next month.
While affordabil
