Smart Trade Insights
  • Business
  • Economy
  • Investing
  • Politics
Top Posts
Copper Soars to All-Time High as Trump Unveils...
Radisson Announces Positive Preliminary Economic Assessment for O’Brien...
Triumph Gold
Sranan Gold Provides Progress Update on Drilling Campaign...
Maritime Resources
Completion of Tranche 1 Equity Placement & Cleansing...
5 Silver Stocks With Dividends
Placement Shares Issued & Drilling Approval Expected August
Drilling recommences at Yunndaga
Mark O’Byrne: Gold, Silver Prices Going Much Higher...
  • Business
  • Economy
  • Investing
  • Politics

Smart Trade Insights

Business

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

by admin September 27, 2024
September 27, 2024
Surging AI demand could cause the world’s next chip shortage, research says

A surge in demand for artificial intelligence-focused semiconductors and AI-enabled smartphones and laptops could lead to the next global chip shortage, according to a report released Wednesday by consultancy Bain & Co.

The last major semiconductor shortage happened during the Covid-19 pandemic amid supply chain disruption and a rise in demand for consumer electronics as people were forced to stay and work at home.

Technology giants have been snapping up graphics processing units, or GPUs, mainly from Nvidia. These GPUs which are housed in data centers are critical for the training of huge AI models which underpin applications like OpenAI’s ChatGPT.

Meanwhile, companies like Qualcomm are designing chips that go into smartphones and personal computers and allow those devices to run AI applications locally rather than via an internet connection in the cloud. These are often referred to as AI-enabled devices and companies from Samsung to Microsoft have released such products.

Bain said demand for GPUs and AI consumer electronics could be the cause of a chip shortage.

“Surging demand for graphics processing units (GPUs) has caused shortages in specific elements of the semiconductor value chain,” Anne Hoecker, head of the technology practice in the Americas at Bain, told CNBC by email.

“If we combine the growth in demand for GPUs alongside a wave of AI-enabled devices, which could accelerate PC product refresh cycles, there could be more widespread constraints on semiconductor supply.”

However, it’s unclear at this point how much demand such AI-enabled gadgets will have, given what appears to be a cautious approach to them from consumers so far.

Bain noted that the semiconductor supply chain is “incredibly complex, and a demand increase of about 20% or more has a high likelihood of upsetting the equilibrium and causing a chip shortage.”

“The AI explosion across the confluence of the large end markets could easily surpass that threshold, creating vulnerable chokepoints throughout the supply chain,” the report added.

The semiconductor supply chain is spread across multiple companies. For example, while Nvidia might design its GPUs, they are made by Taiwan Semiconductor Manufacturing Co., or TSMC, in Taiwan. TSMC relies on chipmaking tools from countries around the world, such as the Netherlands. Furthermore, the most cutting-edge chips can only be made at a large scale by TSMC and Samsung Electronics.

Geopolitics could also be a factor prompting a chip shortage. Semiconductors are seen by governments around the world as strategic technology. The U.S. has been on a campaign, via export restrictions and other sanctions, of trying to restrict China’s access to the most advanced chips. Meanwhile, Washington has sought to shore up its own domestic capacity to produce semiconductors.

“Geopolitical tensions, trade restrictions, and multinational tech companies’ decoupling of their supply chains from China continue to pose serious risks to semiconductor supply. Delays in factory construction, materials shortages, and other unpredictable factors could also create pinch points,” Bain said.

This post appeared first on NBC NEWS

previous post
How birria took over restaurant menus across the country
next post
Ripple and Tron: Tron is back on the positive side

You may also like

Affirm announces JPMorgan Chase merchants can now offer...

March 27, 2025

Coca-Cola takes on Olipop and Poppi with new...

February 20, 2025

Disney raises streaming prices for Hulu, Disney+ and...

August 8, 2024

FDA officially authorizes Zyn nicotine pouches for sale...

January 18, 2025

Why Wall Street thinks Brian Niccol is the...

August 15, 2024

Harris to propose federal ban on ‘corporate price-gouging’...

August 16, 2024

Delta says chaos after CrowdStrike outage cost it...

August 10, 2024

NBC ripped up its Olympics playbook for 2024...

September 4, 2024

Nike pushes back Skims launch with Kim Kardashian...

June 20, 2025

Sports streaming venture from Fox, Disney and Warner...

August 2, 2024

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Copper Soars to All-Time High as Trump Unveils 50 percent Tariff on Imports

      July 10, 2025
    • Radisson Announces Positive Preliminary Economic Assessment for O’Brien Gold Project

      July 10, 2025
    • Triumph Gold

      July 10, 2025
    • Sranan Gold Provides Progress Update on Drilling Campaign at the Tapanahony Gold Project in Suriname

      July 10, 2025
    • Maritime Resources

      July 10, 2025
    Promotion Image

    banner ads

    Categories

    • Business (760)
    • Economy (829)
    • Investing (2,378)
    • Politics (737)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: smarttradeinsights.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 smarttradeinsights.com | All Rights Reserved