AI data center boom is leaving consumer electronics short of chips − even though they don’t use the same kinds

Data centers need powerful chips, while smartphones need chips that are energy efficient. A supply chain scholar explains why chipmakers’ focus on the former comes at the expense of the latter.

By: Vidya Mani, University of Virginia; Cornell University, The Conversation

Outlets: The Conversation

Published: May 1, 2026

Words: 1,453

Last Updated: 2 months, 4 weeks ago

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By Vidya Mani, University of Virginia; Cornell University

The boom in data center construction is taking up much of the supply of high-tech components, especially processor and memory chips. This demand is squeezing consumer device makers, which are having trouble acquiring enough chips.

This is happening even though data center servers and smartphones use different types of chips. The key distinction between consumer electronics and data centers is what they need chips to be …

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