TSMC CEO: AI chip shortage will continue for another year and a half

Major semiconductor manufacturer TSMC has warned that the shortage of chips for artificial intelligence will last until the end of 2024.

Here's What We Know

According to TSMC chief Mark Liu, AI chip production is being held back by a shortage of advanced packaging capacity used to bond silicon wafers. The company can only meet about 80 per cent of demand for the technology.

Chip-on-wafer packaging (CoWoS) is used in some of the most advanced chips. It is particularly in demand in AI chips with high-bandwidth memory (HBM), which is optimal for machine learning.

According to Liu, the lack of CoWoS capacity is a temporary bottleneck in accelerator manufacturing. Additional equipment should be operational within a year and a half.

Until then, the shortage will affect Nvidia's A100 and H100 chips used in popular generative AI models. Other manufacturers, including AMD, will also be affected by the problem.

Source: The Register