A recent research suggests that escalating demand for Artificial Intelligence (AI) could potentially trigger the world’s next chip shortage. AI applications are increasingly being incorporated by various industries, ranging from healthcare, automotive, tech manufacturing to retail and more for improving efficiency and productivity.
This high demand needs correspondingly high processing power, leading to a surge in the requirement for advanced chips. As a result, the semiconductor industry, which is just coming out of a global chip supply crunch, might face another shortage.
This could have a domino effect on various sectors, causing potential delays and increased costs in areas like electronics, automated systems, vehicles, etc. It also emphasizes the vital need for continued investment, research and development in the chip manufacturing industry to anticipate this growing demand.
The report further highlights the importance of diversifying chip production across countries to safeguard supply chains from regional disruptions. Governments and tech companies around the globe are increasingly recognizing this issue, with efforts being made to increase domestic chip production capabilities.
Surging AI demand could cause the world’s next chip shortage, research says
A recent research suggests that escalating demand for Artificial Intelligence (AI) could potentially trigger the world’s next chip shortage. AI applications are increasingly being incorporated by various industries, ranging from healthcare, automotive, tech manufacturing to retail and more for improving efficiency and productivity.
This high demand needs correspondingly high processing power, leading to a surge in the requirement for advanced chips. As a result, the semiconductor industry, which is just coming out of a global chip supply crunch, might face another shortage.
This could have a domino effect on various sectors, causing potential delays and increased costs in areas like electronics, automated systems, vehicles, etc. It also emphasizes the vital need for continued investment, research and development in the chip manufacturing industry to anticipate this growing demand.
The report further highlights the importance of diversifying chip production across countries to safeguard supply chains from regional disruptions. Governments and tech companies around the globe are increasingly recognizing this issue, with efforts being made to increase domestic chip production capabilities.
