AI Supply Chain BriefAI and data centers: supply chain stories
Every AI Supply Chain Brief story tagged “data centers”, newest first (8).
AI's appetite for memory just caused the worst quarter on record for smartphones
IDC's preliminary numbers show global smartphone shipments fell 22% year over year in the third quarter to about 255 million units, the steepest quarterly drop it has ever recorded. IDC blames the AI-driven memory shortage: memory costs are up roughly 350% from a year ago, and vendors have cut low-end models and raised prices. IDC expects pressure to last through 2027 and warns that some makers built ahead of next year's expected component squeeze, which could leave excess inventory if demand stays soft.
Read the story →So whatIf any of your products use DRAM or flash, treat memory as a constrained, fast-moving cost input in your plan.
Adani and Jabil sign up to build AI racks and servers in India
Adani Enterprises and contract manufacturer Jabil signed a non-binding memorandum of understanding on October 13 for a 50:50 joint venture to make and assemble AI racks, servers, storage, networking gear, power distribution, liquid cooling and transformers in India, plus installation and commissioning. The companies are aiming for multi-gigawatt rack capacity for Indian and export customers. No investment figure or production date was given, and the deal still needs definitive agreements and approvals.
Read the story →So whatAnother region is lining up to build AI data-center hardware, which could widen your options for racks, power and cooling over time.
TSMC: AI chip demand is still bigger than its capacity, and it's scouting Texas
TSMC reported third-quarter revenue of about $46.7B, up roughly 51% from a year ago, and guided fourth-quarter revenue to $52.3B to $54.3B. Management said AI-related demand remains very strong and the gap between demand and supply is still large, with 2026 capital spending planned at $60B to $64B. The WSJ reported that TSMC has sent teams to Texas to evaluate expansion beyond Arizona.
Read the story →So whatDon't plan on leading-edge chip or advanced-packaging lead times easing in 2027.
Chip tariffs: the data-center exemption is still in limbo
January's Section 232 tariff put 25% on certain advanced logic chips but exempted chips headed for US data centers, pending a Commerce Department review that hasn't been published. On October 2, five tech trade groups including CCIA and TechNet asked the White House to keep any further chip, robotics and machinery tariffs targeted, and to extend any tariff offset program to downstream buyers. No second-phase decision has been announced.
Read the story →So whatIf you import servers, accelerators or robotics, map which items fall under the current tariff codes and which end-use exemption you…
Lumentum says its AI optics are sold out until about 2029
The CEO of optical-components maker Lumentum told Bloomberg the company is fully booked into early 2029. For some product lines, it can't fill about 70% of demand through 2027, and some customers are already placing orders for 2030. Six months ago, he expected to sell out only through 2028.
Read the story →So whatIf you buy networking or server hardware, ask distributors now about allocation and lead times on anything with high-speed optics.
Adani and Jabil plan a 50:50 AI hardware joint venture in India
Adani Enterprises and contract manufacturer Jabil signed a non-binding MoU to build and assemble AI racks, servers, storage, networking, power and liquid-cooling gear in India at multi-gigawatt scale. The deal still needs definitive agreements and approvals, and no timeline has been announced.
Read the story →So whatTreat this as a possible new source of data-center hardware supply from 2028 onward, not today's capacity.
GPU rental prices keep rising even as AI token prices fall
Posts on X highlighted that rental prices for top-end Nvidia GPUs climbed after per-token AI prices peaked, a classic Jevons effect: cheaper AI drives more usage. Silicon Data's B300 rental index launched near $6.95/GPU-hour, up roughly 44% since April. A separate marketplace tracker showed another weekly gain in early October.
Read the story →So whatCheaper per-token AI doesn't mean a smaller AI bill.
Broadcom is lining up $30–50B+ to finance OpenAI's custom chips
The WSJ reported that Broadcom is working to arrange more than $50B in financing for the custom AI chips it is co-developing with OpenAI, with Apollo and Blackstone in talks. Bloomberg put the figure nearer $30B and called the talks early. Either way, private credit is now funding chip supply directly.
Read the story →So whatWhen suppliers finance their biggest customers' purchases, allocation follows the money for years.
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