“Technology companies, particularly those involved in AI training and inference, could experience delays and higher costs in acquiring these critical components,” Rawat said. “Similarly, server and PC chip shortages are exacerbated by restrictions on chipmaking tools, making it more difficult for Chinese manufacturers to produce advanced chips for servers and high-performance systems, which may result in delays or dependence on less advanced nodes.”
The resulting supply constraints could drive up chip prices, reducing profit margins for enterprise technology companies or increasing costs for customers, impacting competitiveness in the market.
To address these challenges, companies may be forced to diversify their supply chains, identify alternative suppliers and adapt their sourcing strategies. However, finding replacement solutions for advanced semiconductors can be costly and difficult, further increasing operational expenses.