Analog Chip Supply Shortage Expected to Persist for at least Two Years

Driven by the AI boom, the demand for analog chips, particularly power semiconductors, is surging, with industry reports indicating that supply shortages will persist for at least two years. Despite active expansion of 12-inch (300mm) wafer capacity, supply growth cannot keep pace with the rapidly multiplying downstream demand. AI logic chips rely heavily on robust power supply systems, making power semiconductors crucial for lowering power infrastructure costs and accelerating grid deployment. Resolving these supply constraints is essential to alleviate concerns over the massive electricity consumption of AI data centers and to enable further infrastructure expansion. Industry insiders report that downstream demand is projected to double year-over-year, leaving room for further price increases. The supply gap remains wide even as manufacturers transition to larger 300mm wafer fabrication lines.