AI's exploding popularity is putting serious pressure on the global chip supply.
At a recent tech fair in Munich, Nexperia's interim CEO Stefan Tilger explained that Nexperia is "totally oversubscribed" as suppliers divert manufacturing capacity toward fast-growing AI data centers and away from mature chips used in vehicles and industrial equipment.
The catch? This focus means fewer of the tried-and-true chips that carmakers and factories rely on are available.
Automakers struggle as foundries prioritize AI
Automakers are really struggling with these shortages.
Nexperia's interim CEO Stefan Tilger pointed out that some competitors had shifted capacity away from the commodity semiconductors supplied by Nexperia, making things worse for everyone else.
STMicroelectronics's CEO Jean-Marc Chery echoed this, saying foundries and chip-packaging companies are now giving priority to AI and robotics over automotive or industrial needs.
Even though STMicroelectronics has a manufacturing footprint to help soften the blow, demand for AI still outpaces investment in essential older tech like diodes and transistors.