AI Demand Creates Auto Chip Bottlenecks

Chipmakers warn that surging demand for artificial intelligence data centres is diverting manufacturing capacity away from automotive semiconductors. This shift creates severe supply chain bottlenecks for basic components used in vehicles and industrial equipment.

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Infineon CEO Jochen Hanebeck, STMicroelectronics CEO Jean-Marc Chery, and NXP CEO Rafael Sotomayor speak at a conference in Munich, Germany, November 9, 2026. Picture taken with a mobile phone. REUTERS/Nathan Vifflin

Chipmakers in Netherlands warned that soaring artificial intelligence demand is redirecting manufacturing capacity away from automotive parts. The supply shift is triggering severe bottlenecks across the European industrial and vehicle supply chain.