Analysts at consulting firm Bain & Co. stated that the demand for semiconductors used to power artificial intelligence-supported devices is increasing exponentially, so there may be a chip shortage in the near future. The coronavirus outbreak has already led to a shortage of semiconductors due to supply chain disruptions and reduced demand for consumer electronics.
Now tech giants like Nvidia are actively purchasing the data center GPUs needed to train AI models. Companies like Qualcomm are also developing chips that can run artificial intelligence applications natively for smartphones and computers. Rising demand for GPUs and AI-powered devices could lead to more severe semiconductor supply constraints and even worse shortages. There is even talk of a temporary stagnation in the sector.
This will also be driven by the “incredibly complex” semiconductor supply chain. Moreover, such a scenario could begin with a mere 20% increase in demand for AI chips.
Analysts from Bain & Company assessed the situation as follows: “Geopolitical tensions, trade restrictions and the disconnection of multinational technology companies from supply chains in China continue to pose serious risks to semiconductor supply.”
Source: Ferra
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