Rising demand for high-performance chips challenges the adoption of AI technology

The adoption of generative artificial intelligence (genAI) is increasing, but there is a shortage of the high-performance chips, specifically high-bandwidth memory (HBM) chips, needed to support its growth. SK Hynix, a major HBM supplier, announced that its HBM products are fully booked through 2025 due to high demand, leading to increased prices. However, other manufacturers like Samsung and Micron are increasing production to meet the demand. TSMC, the exclusive supplier of HBM technology, is also increasing capacity to alleviate shortages. …

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