The Race for Artificial Intelligence Means a Race for Computer Chips

Artificial Intelligence (AI) is revolutionizing the way the world works. From ChatGPT to employee recruiting, to national defense systems, AI is becoming a cornerstone of everyday living. However, as these technological advancements become more mainstream, the computing power behind them is experiencing an increased demand. The globe is entering a race to keep up with the demand and the United States, like other countries, is tasked to consider the long-term strategy to produce semiconductors and computer chips to support the demand.

AI’s Impact on the Semiconductor Industry

Artificial Intelligence is in almost every application and has proven to be a helpful tool across all industries and the globe. However, the sheer volume of data being processed and stored by AI-integrated circuits makes the need for specific AI components to replace current parts in everything from our laptops to military-grade equipment. This may result in the obsolescence of current technology as manufacturers focus on the high-demand chips required for AI-enabled end products. It may also mean that the time to produce these high-capacity chips may be longer than traditional capacities.

The United States and AI Leadership

Through the CHIPS and Science Act, the government is spending nearly $53 billion to spur research in and development of America’s semiconductor industry. According to a recent report by ABC News, the United States has made the commitment to fostering innovation, combined with a robust tech ecosystem, and enabling the U.S. to produce cutting-edge AI technologies and applications. As a result, American companies have secured significant investments, propelling them to the forefront of the industry.

The U.S. Commerce Department’s Commitment to Semiconductors

However, while the United States holds a lead in AI development, Commerce Secretary Gina Raimonda in an ABC News interview highlighted a critical issue that could impact this dominance — the shortage of computer chips. “We need to make these chips in America, we need more tablets available in America,” she said. “We need more research and development in America. And we take a lot more manufacturing and scale.”

Currently, the U.S. only produces 12% of global chips, but the Commerce Secretary believes that by the end of the decade, the U.S. will be making up to 20% of the world’s semiconductors.

How to Support Through Growth

Technology will continue to advance and these challenges with supporting growing demand should not prevent us as a global community from taking the necessary steps forward. However, there are alternatives to support demand as the world catches up through working with a trusted supply chain and sourcing partner, like Converge. Converge has the computing expertise to understand the AI industry and the network to source reliable and high-quality components needed for any application.

Contact Converge today to learn more about the AI industry and to source AI computer chips.

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