Beyond GPUs: AI-driven shortages hit chip materials and components - South China Morning Post

As artificial intelligence continues to advance, the semiconductor supply chain is facing unprecedented pressure. Recently, not only GPU and memory chip prices have risen, but upstream materials and c... Read original →

The AI compute arms race is shifting semiconductor supply chain stress from chip design down to raw materials. Once-overlooked components—MLCCs, silicon carbide power devices, and copper-clad laminates—are now critical bottlenecks due to high technical barriers and long lead times (18–24 months). Infineon and Murata’s price hikes reflect strategic cost-shifting amid geopolitical volatility: helium disruptions from Middle East conflicts and PCB material concentration in Taiwan, China heighten fragility. Texas Instruments is accelerating U.S. back-end investments to mitigate logistics risk, while Chinese players like Yangjie benefit from localization but remain dependent on imported ceramic powders and specialty gases. Over the next 12–24 months, upstream suppliers will command lasting pricing power, permanently inflating AI server BOM costs and forcing OEMs into vertical integration or long-term supply contracts. This ‘materials inflation’ marks a structural shift—not a cyclical blip—as global tech rivalry pivots to resource control.