Global semiconductor market faces shortages as AI demand strains supply chains - digitimes

The global semiconductor industry faces unprecedented challenges as multiple converging forces squeeze the market since mid-2025: surging AI demand, escalating geopolitical fragmentation, and supply c... Read original →

The AI compute arms race is pushing 3nm and below nodes to their physical and geopolitical limits. TSMC’s EUV-based capacity, though dominant, is now locked in by NVIDIA and peers via premium long-term agreements, stretching lead times for smaller clients beyond 18 months and accelerating the shift toward chiplet-based architectures over monolithic dies. U.S. CHIPS Act mandates and EU localization subsidies are inflating global fab compliance costs, delaying TSMC’s Arizona and Dresden ramps and deepening regional supply gaps. Samsung and Intel may position themselves as ‘second-source’ foundries for AI chips, but yield maturity remains a hurdle. Over the next 12–24 months, ‘advanced-node inflation’—rising per-transistor cost—will emerge, catalyzing national ‘trusted supply chain’ alliances. Semiconductors are no longer mere commodities; they’re strategic infrastructure.