Chip supply chain braces for more price hikes as upstream parts create new bottlenecks

AI Summary

The chip supply chain is facing new price increases as upstream components like power chips and capacitors become bottlenecks due to rising demand driven by AI development. These constraints threaten the rollout speed of global artificial intelligence infrastructure.

The AI-driven price surge in the semiconductor supply chain is spreading beyond graphics processing units (GPUs) and memory chips to upstream materials and manufacturing inputs, creating new bottlenecks that could slow the buildout of global artificial intelligence infrastructure. Suppliers of once less-visible parts are gaining leverage as customers compete for limited capacity. These range from power chips and capacitors that regulate electricity inside AI data centres, to copper-clad...