AI data center boom squeezes consumer tech’s chip supply—even though they use different chips

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 optimized for. Smartphones and PCs require low power use, thermal efficiency, and tight integration.