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AI Data Boom Sparks Global Chip and Supply Bottlenecks

AI Data Boom Sparks Global Chip and Supply Bottlenecks

Post by : Bianca Haleem

The rapid expansion of artificial intelligence data centres worldwide is putting unexpected pressure on global supply chains, according to SK Group Chairman Chey Tae-won.

Chey, who leads South Korea’s SK Group—a conglomerate that includes memory chipmaker SK Hynix—highlighted that the surge in AI infrastructure is creating bottlenecks for essential components, from advanced chips to support services.

"Now, a lot of AI data centres need to be built, and for everything that goes into them, from chips to services, they are creating bottlenecks," Chey said at a business event connected to the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea.

The intense global competition in AI has prompted major economies, including the United States and China, to roll out national strategies aimed at securing technological leadership. This race is driving unprecedented demand for semiconductors, high-performance computing equipment, and data centre services, further straining already stretched supply chains.

As AI adoption accelerates across sectors—from cloud services to autonomous systems—industry insiders warn that delays in chip production and infrastructure deployment could affect companies and governments alike. Analysts note that addressing these bottlenecks may require coordinated investments in manufacturing capacity and logistics, particularly in high-demand regions.

The situation underscores a broader shift in global technology priorities, where the speed of AI deployment is testing the resilience of the world’s supply networks, forcing businesses to rethink sourcing and inventory strategies.

Oct. 28, 2025 12:38 p.m. 1807
Tech

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