Skip to content
AI hardware · Layer

Supply constraints and bottlenecks

AI hardware is a chain of dependent steps, and the slowest link sets the pace. Understanding where the binding constraints sit explains why compute is scarce even when one input is plentiful.

Key facts

  • The recurring chokepoints are HBM, advanced packaging (CoWoS-class), and grid power, more than raw wafer capacity.
  • Each chokepoint has long lead times to expand, so shortages persist for quarters or years, not weeks.
  • Concentration compounds scarcity: leading-edge fabrication, EUV, and HBM each rest on very few suppliers.
  • Export controls add a policy layer on top of the physical chain, restricting where the most advanced hardware can go.

Where it bottlenecks

The binding constraint rotates between HBM, packaging, and power; relieving one often just exposes the next.

Who dominates it

TSMCSK HynixASMLNVIDIA

Explore other layers

Supply constraints and bottlenecks in the AI hardware supply chain · SDEN