BT WARNS AI BOOM WILL DRIVE SMARTPHONE PRICES UP

BT chief executive Allison Kirkby warned that the artificial intelligence boom is creating a supply crunch for semiconductor chips, with major technology firms purchasing vast quantities of memory components to power AI-dependent datacentres. This concentration of chip demand threatens to squeeze supplies available for smartphone manufacturers, potentially driving up consumer prices. The shortage reflects how AI infrastructure buildout is reshaping global semiconductor markets. Chip shortages have previously disrupted electronics production across multiple sectors. This time, the driver is the race to build out AI computational capacity rather than pandemic-related factory closures or logistics issues. Telecom and device makers face mounting pressure to secure chip allocations amid intense competition from datacentre operators. The supply chain strain underscores growing tensions between consumer electronics and enterprise AI infrastructure demands for finite semiconductor resources.