AI-fueled chip shortage pushes prices higher - WFMJ

The rapid advancement of artificial intelligence has led to a surge in global demand for semiconductors, resulting in a severe chip shortage that is driving prices upward. This trend is particularly e... Read original →

The AI compute arms race is pushing 3nm and EUV processes to their capacity limits, not only raising barriers for advanced packaging like CoWoS but also forcing automotive and consumer electronics firms to fall back on mature nodes—creating structural mismatches. U.S. export controls and ASML’s delayed EUV shipments are inflating TSMC’s compliance costs in Taiwan, China, while NVIDIA leverages HBM integration and custom chiplets to deepen its ecosystem moat. Samsung and Intel will accelerate sub-2nm development, yet yield ramp timelines will blunt their near-term competitiveness. Over the next 18 months, wafer foundry pricing power will concentrate further among leaders, with customers increasingly prepaying for capacity. Geopolitical risks will spur redundant supply chains in the U.S., EU, and Japan—but extended capex payback periods may deter second-tier players from investing, cementing a ‘winner-takes-most’ industry structure.