Memory Chip Crunch Threatens Price Hikes for Smartphones

According to analysts, your next phone or laptop may cost more than expected. The massive push to build artificial intelligence data centers is creating serious bottlenecks across electronics supply chains, and that’s bad news for gadget prices. Companies are throwing hundreds of billions at AI infrastructure worldwide, per reports . The problem? Those data center chips come from the same suppliers making parts for your phone and laptop. Component prices are jumping, and there are real worries about shortages and higher costs down the line. Peter Hanbury, a partner at Bain & Company’s technology practice, put it simply: “We see the rapid increase in demand for AI in data centers driving bottlenecks in many areas.” Multiple Pressure Points Eddie Wu, the CEO of Alibaba, gave one of the starkest warnings yet. His company builds AI systems and makes custom chips, which means he’s got a front-row seat to these supply...

https://www.cryptopolitan.com/buyers-higher-prices-ai-chip-demand-strains-supply/