Surging AI demand could cause the world’s next chip shortage, research says

Yes, that is a prevalent concern in the tech industry right now. The worldwide adoption and implementation of AI technologies have skyrocketed, leading to an increased demand for chips. Chipsets, particularly GPUs (Graphics Processing Units) and ASICs (Application-Specific Integrated Circuits), are essential components of AI systems due to their ability to process complex algorithms swiftly.

This surge in AI adoption coincides with an already existing global semiconductor chip shortage, a situation exacerbated by factors like the COVID-19 pandemic, geopolitical tensions, and adjustments in supply chain strategies. Should the demand for AI continue rising without a corresponding increase in chip production, we may indeed face a future chip shortage primarily driven by the AI sector.

There’s an urgent need for increased investment in chip manufacturing capacity, as well as strategies for more resilient supply chains, to prevent such a situation. The global economies, tech companies, and governments are already ill-prepared for the current shortage, and another shortage could have more severe consequences.

Online Investing Daily

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!