Background on the American Chamber of Commerce (AMCHAM) Guadalajara
Guadalajara, Jalisco. The rapid growth of data centers and artificial intelligence (AI) is starting to put pressure on the global supply chain for electronic components, similar to the post-pandemic shortages that affected industries like automotive and home appliances, warns the American Chamber of Commerce (AMCHAM) Guadalajara chapter.
AMCHAM’s Warning
Ernesto Sánchez Proal, president of AMCHAM Guadalajara, told El Economista that during the latest meeting of the Council of Large American Companies at AMCHAM Guadalajara, executives from US companies operating in Jalisco agreed to raise a “yellow alert” due to the rapid consumption of technological inputs required for operating large data centers and AI servers.
Impact on Electronic Components
Sánchez Proal explained that while the AI debate often focuses on its impact on employment, there is a less visible but potentially more disruptive implication: the pressure on the ability to supply electronic components to various industries globally.
“This rapid growth implies the acquisition of electronic components on a very large scale. Just as there was an electronics component shortage post-pandemic affecting industries like automotive, we are now seeing this effect due to components used in building AI-related servers and large data centers,” emphasized Sánchez Proal.
In-Demand Components
According to the AMCHAM Guadalajara president, the most sought-after components include memory and electronic cards (printed circuits), as well as processors and passive components, which are present in almost all industries.
Regional Benefits and Challenges
Sánchez Proal highlighted that, regionally, this phenomenon could have a positive effect for Jalisco, where numerous US companies engaged in electronic manufacturing operate.
However, he also noted that there could be an impact due to the shortage of components, particularly in electronics-intensive sectors like automotive, home appliances, and consumer electronics.
“Many American companies here in Guadalajara, from that sector, are already manufacturing AI-related components, producing equipment related to this, data processing chips, etc. The regional effect will be positive for many of these companies, but there could be a negative impact on other sectors due to this projected component shortage,” Sánchez Proal pointed out.
Companies Adjust Strategies
In light of this scenario, some companies are adjusting their supply strategies by reinforcing advance purchases and inventories to mitigate potential disruptions.
Nevertheless, the AMCHAM Guadalajara president acknowledged that completely avoiding shortages for critical components will be challenging.
“I believe that in these specific components, it will be difficult to avoid some shortage effects; however, they could be reduced by adapting designs to components not part of the supply chain for these large data centers and AI,” Sánchez Proal stated.
The evolution of this phenomenon will be one of the topics addressed during the upcoming Council of Large American Companies meeting, scheduled for February or March, when more information is expected about the real pressure on the supply chain.
Key Questions and Answers
- What is the concern? The rapid growth of data centers and AI is putting pressure on the global supply chain for electronic components, similar to post-pandemic shortages.
- Which components are in high demand? Memory, electronic cards (printed circuits), processors, and passive components are the most sought-after.
- Who is affected? Industries intensive in electronics, such as automotive, home appliances, and consumer electronics, could be impacted.
- What are companies doing about it? Some companies are adjusting their supply strategies by reinforcing advance purchases and inventories.
- Can shortages be avoided? Completely avoiding critical component shortages will be challenging, but effects could be reduced by adapting designs.
