Artificial intelligence (AI) is being increasingly implemented across all industries, which is leading some to forecast semiconductor shortages. The demand for AI technology combined with global supply chain pressures like geopolitical tensions, natural disasters, and tariffs may challenge the industry’s ability to keep up.
Many businesses are rapidly adopting AI, with some of the top adopters being software development companies and customer support services.
There are two key areas in which demand is highest:
According to consulting firm Bain & Company, even a 20% demand increase could lead to a shortage market; current AI-related growth projections are likely to exceed this threshold. This could result in potential shortages in semiconductor components if the supply chain is unable to adapt.
While AI demand is the primary driver, other global issues could exacerbate any potential shortage:
The rapid growth of AI has affected two key markets, both relying on the semiconductor supply chain. Not only are data centres competing for GPUs to support AI models, but consumers upgrading to AI-capable devices are adding to the strain.
Some delays have already begun, with GPUs like NVIDIA’s Blackwell out of stock until 2025. If this trend continues, consumers may experience further delays in obtaining AI-enabled devices, and companies could be forced to push back product releases.
Although a shortage isn’t certain, geopolitical tensions and other factors could complicate the industry’s ability to maintain a steady supply. Businesses relying on consistent semiconductor availability may want to prepare for potential disruptions, such as buying stock in advance or scheduling deliveries.