AI Supply Chain BriefAI in Manufacturing
Factories, production and hardware supply. Stories from the AI Supply Chain Brief.
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.
Physical Intelligence opens its robot models to outside developers
Physical Intelligence launched a waitlisted beta of its Pi API on October 13. Teams upload their own robot data, fine-tune the company's general-purpose models on its managed infrastructure, and run them through a hosted service. Robots-as-a-service provider Formic, which says 150 factories use its robots, is an early partner. The company noted that network connectivity was a challenge in some early cloud-run deployments.
Read the story →So whatGeneral-purpose robot AI is becoming something you rent, not build.
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.
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