Microchip shortage due to AI data centres drives up cost of smartphones, laptops

A global shortage of memory chips will soon cause South African consumers to pay more for smartphones and laptops. 

Tech expert Siphumelele Zondi explained that this is largely due to the high demand for microchips, driven by the rapid development of artificial intelligence (AI) technology.

“Some of the big players in the AI sector are buying up a lot of powerful microchips and keeping them almost to themselves. They will need them for these data centres, powering up everything.

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Zondi said that the tech industry is feeling the strain, with major players like Apple’s Tim Cook and Tesla’s Elon Musk expressing concerns about the impact on their businesses.

Importing from regions such as China has also become a challenge due to trade tensions and tariffs.

With no easy solution in sight, he added that the shortage is likely to have a ripple effect, with companies passing the high costs down to consumers.

“It is multiple problems happening at the same time, and the person who gets affected the most is the consumer who needs this technology and appliances.”

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To listen to Zondi in conversation with 702 and CapeTalk’s Stephen Grootes, use the audio player below: