AI frenzy driving new global supply chain crisis
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Dec 4, 2025 | Page No.: 1 | Position: Top Center | Source: REUTERS | Sq Cm: 279 | AVE: 43319 | PR Value: 216595
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WORLD 8 AI frenzy driving new global supply chain crisis Altfrenzy driving new global supply chain crisis REUTERS more than doubled since February Details of the global scramble by announced investments in new capac- 3 December according to market-research firm tech firms and price increases described ity but haven t detailed the production TrendForce drawing in traders betting by electronics retailers and component split between HBM and conventional An acute global shortage of memory that the rally has further to am suppliers in China and Japan are memory SK Hynix has told analysts that chips is forcing artificial intelligence The fallout could reach beyond reported here for the first time the memory shortfall would last and consumer-electronics companies tech Many economists and executives Average inventory levels at sup- through late 2027 Citi said in November to fight for dwindling supplies as warn the protracted shortage risks pliers of dynamic random-access These days we re receiving requests prices soar for the unglamorous but slowing AI-based productivity gains memory DRAM - the main type used for memory supplies from so many essential components that allow and delaying hundreds of billions of in computers and phones - fell to two to companies that we re worried about devices to store data dollars in digital infrastructure It could four weeks in October from three to how we ll be able to handle all of them If Japanese electronics stores have also add inflationary pressure just as eight weeks in July and 13 to 17 weeks in we fail to supply them they could face a begun limiting how many hard-disk many economies are trying to tame late 2024 according to TrendForce situation where they can t do business at drives shoppers can buy Chinese price rises and navigate US tariffs The crunch is unfolding as investors all Chey Tae-won chairman of SK smartphone makers are warning of The memory shortage has now EXPERTS WARN PROTRACTED CHIP question whether the billions of dollars Hynix parent SK Group said at an price increases Tech giants including graduated from a component-level SHORTAGE COULD SLOW Al-BASED poured into AI infrastructure have industry forum in Seoul last month Microsoft Google and ByteDance are concern to a macroeconomic risk said PRODUCTIVITY GAINS AND DELAY inflated a bubble Some analysts pre- OpenAI in October signed initial scrambling to secure supplies from Sanchit Vir Gogia CEO of Greyhound BIG DIGITAL PROJECTS dict a shakeout with only the biggest deals with Samsung and SK Hynix to memory-chip makers such as Micron Research a technology advisory firm and financially strongest companies supply chips for its Stargate project Samsung Electronics and SK Hynix The AI build-out is colliding with a chips - driven by Nvidia and tech giants able to stomach the price increases which would require up to 900 000 according to three people familiar with supply chain that cannot meet its like Google Microsoft and Alibaba - One memory-chip executive told wafers per month by 2029 That s about the discussions physical requirements created a dual bind Chipmakers still Reuters the shortage would delay future double current global monthly HBM The squeeze spans almost every This Reuters examination of the spi- can t produce enough high-end semi- data-center projects New capacity takes production Chey said Samsung told type of memory from flash chips used raling supply crisis is based on inter- conductors for the AI race yet their tilt at least two years to build but memory- Reuters it is monitoring the market but in USB drives and smartphones to views with almost 40 people including away from traditional memory prod- chip makers are wary of overbuilding for wouldn t comment on pricing or cus- advanced high-bandwidth memory 17 executives at chipmakers and dis- ucts is choking supply to smartphones fear it could end up idle should the tomer relationships SK Hynix said it is HBM that feeds AI chips in data tributors It shows industry efforts to PCs and consumer electronics Some demand surge pass the person said boosting production capacity to meet centers Prices in some segments have meet voracious appetite for advanced are now hurrying to course-correct Samsung and SK Hynix have increased memory demand