AI Demand Threatens Chip Shortage

  • SaySay
  • Ai
  • June 18, 2024
  • 0 Comments

Amid the surging demand for high-tech products featuring artificial intelligence capabilities, the industry is facing a looming shortage of 3nm chips. Four major global chip consumers—NVIDIA, Apple, AMD, and Qualcomm—are leveraging these AI-enhanced chips in their new and upcoming products, including graphics accelerators, processors, and mobile devices. This intense demand has already booked all production lines of the world’s leading semiconductor manufacturer, TSMC, through 2026.

The latest chips are produced using 3nm technology, and TSMC is even modernizing its previously underutilized 5nm production lines to meet the new technical demands. Despite expanding production capacity nearly threefold, TSMC plans to produce up to 180,000 semiconductor wafers per month to keep up with the demand.

Due to the significant imbalance between supply and demand, chip developers are contemplating price increases. However, TSMC has not yet announced any plans to raise prices for its chips.

This situation underscores the escalating importance of AI in the tech industry, especially in the USA, where companies like NVIDIA and Apple are at the forefront of integrating advanced AI capabilities into their products. The chip shortage highlights the challenges that come with rapid technological advancement and the growing reliance on cutting-edge semiconductor technology.

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