The AI Boom Is Creating A New Supply Chain Headache For Automakers

Automakers and suppliers are warning of a potential new semiconductor shortage caused by the artificial intelligence boom, which is diverting manufacturing capacity, engineering talent, and investments toward AI data centers and robotics. Leaders from chip manufacturers Nexperia and STMicroelectronics report that competitors are shifting production away from basic commodity semiconductors used in traditional automotive and industrial applications. Automotive supplier Aumovio stated that its chip costs are rising and expected to surge next year as suppliers prioritize non-price-sensitive AI infrastructure customers. Open article →