We have been told this is due to the inability to source chips cost-effectively. So I used AI to see what it could tell us…
1. Artificial Intelligence (The Macro Supply Chain Impact)
By far, AI is the dominant force reshaping the semiconductor industry. [2]
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- The Data Centre Boom: The demand for high-performance training datasets and enterprise AI requires a staggering amount of compute, power, and storage. This has led to a surge in demand for specialised AI chips, such as GPUs, TPUs, and NPUs. [2, 3, 4, 5, 6]
- The Memory Crisis: Building AI hardware requires specialised High-Bandwidth Memory (HBM); the incredible demand for this memory has caused shortages for everyday devices like smartphones and laptops. [2, 7, 8]
- Advanced Packaging: The bottleneck in AI hardware production is often no longer the raw silicon manufacturing (wafer production), but rather “advanced packaging”—the incredibly precise soldering and assembly of complex AI chips. [9]
2. Drones (The Specialised Component Impact)
Components used in drones also consume specialised semiconductors, but this affects specific market segments and critical material chains rather than the overall global chip supply. [4, 10]
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- AI on the Edge: Modern drones use specialised AI chips (like NPUs) to make independent decisions, navigate difficult terrain, and perform autonomous target recognition without human assistance. [4]
- Power & Imaging: Companies like onsemi manufacture specialised Gallium Nitride (GaN) and Silicon Carbide (SiC) chips tailored for drone battery management, motor control, and CMOS image sensors. [11]
- Speciality Minerals: The defence and industrial drone manufacturing bases are heavily reliant on critical minerals like gallium, indium, germanium, and tantalum for radio datalinks, electro-optical identification, and flight control systems. [10, 12]
[1] https://warroom.armywarcollege.edu
[2] https://partanalytics.com
[3] https://www.idc.com
[4] https://www.bisinfotech.com
[5] https://www.semiconductors.org
[6] https://www.linkedin.com
[7] https://semiwiki.com
[8] https://enkiai.com
[9] https://www.linkedin.com
[10] https://www.csis.org
[11] https://theinvestorchannel.substack.com
[12] https://www.sfa-oxford.com
[13] https://www.deloitte.com
[14] https://www.youtube.com
[15] https://www.eastechic.com
[16] https://tstronic.eu
