AI Boom Shatters Semiconductor Supply Chain, Driving Up Smartphone and Electronics Prices
Technology
C
CNBC Awaaz•03/12/2025
AI Boom Shatters Semiconductor Supply Chain, Driving Up Smartphone and Electronics Prices
- •The rapid growth of AI is causing significant disruptions in the semiconductor supply chain.
- •High demand for AI data centers is leading to shortages of components like HDDs and DRAM memory.
- •Nvidia's strategic shift to using LPDDR memory in AI chips is exacerbating supply chain issues.
- •Memory prices could rise by 30% in late 2025 and another 20% in early 2026, increasing smartphone and laptop costs.
- •The auto and defense sectors are also affected by the semiconductor shortage due to the shift in production towards AI chips.
Why it matters: Rising semiconductor shortages could make smartphones and laptops unaffordable for many consumers.
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