Tech »  Topic »  4 Issues Exacerbating the Looming AI Chip Shortage

4 Issues Exacerbating the Looming AI Chip Shortage


by Zac Amos April 26th, 2025

Companies are running out of chips to power AI technology. Several factors are contributing to this shortage, including raw material shortages, geopolitical tensions, trade restrictions, and more. For tech leaders to stay ahead, it will be crucial to plan smarter and build strength before shortages begin.

From powering a chatbot to crunching information in massive data centers, artificial intelligence (AI) is growing everywhere. However, one major problem remains at the center of it all — companies are running out of chips to feed the technology. Several factors are contributing to this shortage, and organizations may be looking at serious bottlenecks in the future.

So, what can supply chain managers do before things become more complicated? It starts with understanding some of the leading circumstances fueling the AI chip shortage.

1. Raw Material Shortages

AI chips depend on rare and hard-to-source materials, such as gallium, germanium ...


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