Surging AI demand could cause the world’s next chip shortage, research says

Yes, it seems quite plausible. The demand for Artificial Intelligence (AI) is rapidly growing across various industries which is requiring increasingly powerful chipsets to function efficiently. This increase in demand could lead to a potential chip shortage, similar to what we've experienced due to the pandemic. This issue is further complicated by manufacturing constraints, geopolitical issues, and supply chain disruptions. Chip manufacturers and governments are taking steps to boost production capabilities. However, the process to produce these highly complex microchips is time-consuming and requires substantial investment. Research suggests that companies must improve their supply chain resilience and that nations need to promote domestic production capabilities to prevent future disruptions. Governments worldwide are already looking into strategies about being less dependent on overseas manufacturing of semiconductors.