AI boom tests GOP’s midterm affordability pitch as price pain spreads
The AI-driven surge in demand for semiconductor chips is fueling inflation in consumer goods, challenging Republicans' 2026 midterm promise to reduce everyday costs. Former Rep. Patrick McHenry and other GOP figures warn that rising chip prices are undermining affordability and call for reforms to the CHIPS Act to boost domestic production. The White House defends its economic strategy, citing private-sector investment in semiconductors, while industry and political leaders stress the need to balance AI advancement with consumer price stability. Critics argue the CHIPS Act has failed to prevent shortages and is now contributing to higher prices for electronics, cars, and household items.
- ▪AI-driven demand for memory chips is causing shortages and price increases across consumer products, including cars, laptops, and household devices.
- ▪Former Rep. Patrick McHenry calls the CHIPS Act a 'grave disappointment' as chip prices rise despite federal investments.
- ▪Republican leaders warn that rising consumer prices could damage their political prospects in the 2026 midterms despite campaign promises on affordability.
- ▪The White House attributes progress to Trump’s tariffs, tax cuts, and deregulation, saying they are driving private investment in U.S. semiconductor manufacturing.
- ▪Automakers and tech companies, including Microsoft, cite rising component costs due to chip shortages as a key factor in price hikes and reduced production.
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Artificial Intelligence AI boom tests GOP’s midterm affordability pitch as price pain spreads Former Rep. Patrick McHenry says the CHIPS Act has been a 'grave disappointment' as chip prices climb By Ashley Oliver Fox News Published April 28, 2026 6:00am EDT Facebook Twitter Threads Flipboard Comments Print Email Add Fox News on Google close Video McHenry warns AI-driven chip crunch could worsen inflation, urges GOP to fix CHIPS Act Former House Financial Services chair says global demand for chips is fueling inflation across consumer products and warns Washington must act to boost domestic supply. NEWYou can now listen to Fox News articles! Republicans are warning that their ability to deliver on lowering everyday costs, one of their core campaign promises heading into the 2026 midterms, is being tested by an AI-driven chip shortage that has spilled into consumer markets. if (window && window.foxstrike && Array.isArray(window.foxstrike.cmd)) { window.foxstrike.cmd.push(function(Strike) { Strike.insertAd('tablet', 'lb2', 'tablet-tw-ad-lb2', ''); }); } else { console.error('Error: window.foxstrike not found'); } if (window && window.foxstrike && Array.isArray(window.foxstrike.cmd)) { window.foxstrike.cmd.push(function(Strike) { Strike.insertAd('mobile', 'ban1', 'mobile-mw-ad-ban1', ''); }); } else { console.error('Error: window.foxstrike not found'); } "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. if (window && window.foxstrike && Array.isArray(window.foxstrike.cmd)) { window.foxstrike.cmd.push(function(Strike) { Strike.insertAd('desktop', 'lb2', 'desktop-desk-ad-lb2', ''); }); } else { console.error('Error: window.foxstrike not found'); } AFFORDABILITY: THE ISSUE THAT BOOSTED TRUMP AND REPUBLICANS IN 2024 DEFLATED THEM IN 2025 President Donald Trump delivers remarks at the "Winning the AI Race" AI Summit at the Andrew W. Mellon Auditorium in Washington, D.C., on July 23, 2025. (Andrew Caballero-Reynolds/AFP) if (window && window.foxstrike && Array.isArray(window.foxstrike.cmd)) { window.foxstrike.cmd.push(function(Strike) { Strike.insertAd('mobile', 'ban2', 'mobile-mw-ad-ban2', ''); }); } else { console.error('Error: window.foxstrike not found'); } "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 aren’t particularly high tech, like the things we use to manicure our lawns are impacted by rising prices of chips, so there’s a lot of secondary effects across consumer goods and should be a huge concern." if (window && window.foxstrike && Array.isArray(window.foxstrike.cmd)) { window.foxstrike.cmd.push(function(Strike) { Strike.insertAd('tablet', 'lb3', 'tablet-tw-ad-lb3', ''); }); } else { console.error('Error: window.foxstrike not found'); } Heading into 2026, President…
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