The Knowledge
AI data center boom is leaving consumer electronics short of chips − even though they don’t use the same kinds
Vidya Mani, University of Virginia; Cornell University
The boom in data center construction is taking up much of the supply of high-tech components, especially processor and memory chips. This demand is squeezing consumer device makers, which are having trouble acquiring enough chips.
This is happening even though data center servers and smartphones use different types of chips. The key distinction between consumer electronics and data centers is what they need chips to be optimized for. Smartphones and PCs require low power use, thermal efficiency and tight integration. Data centers that run AI systems such as large language models, or LLMs, require maximum compute power, memory bandwidth and storage throughput.
To meet these needs, consumer devices tend to rely on systems-on-a-chip – chips that combine processing and storage – with dynamic random access memory, or DRAM, and NAND, a type of nonvolatile memory. In contrast, AI servers rely on graphics processing units, or GPUs, or other accelerator processors combined with high-bandwidth memory chips.
I study global supply chains and how businesses respond to market constraints within these supply chains. The reason for the consumer electronics supply crunch has to do with the nature of the chip market: its concentration and high costs and how it responds to boom-and-bust cycles.
AI is not replacing consumer electronics; it is reorganizing the chip market around new priorities for specific chip characteristics. Data centers are pulling capital and scarce memory capacity toward the production of accelerator processors and high-bandwidth memory and the data handling and electronics equipment that surround them. https://www.youtube.com/embed/IkRXpFIRUl4?wmode=transparent&start=0 Chipmaking explained.
A winner-takes-most industry
Chip manufacturing behaves less like a competitive commodity market and more like a layered oligopoly. Scale matters because the leading firms can reinvest in research, improve yields, secure equipment and deepen customer relationships. In the case of graphics processor chips, designers such as NVIDIA, which has 85% market share, depend on advanced semiconductor foundries such as TSMC, which has more than 70% market share, to manufacture chips using extreme ultraviolet lithography machines from ASML, a monopoly.
A small number of producers both design and manufacture memory chips. Currently, three companies – Samsung, Micron and SK Hynix – hold a majority market share in the memory chips market. Long development cycles, extremely high fixed costs and the need for technological leadership reinforce concentration over time.
Consumer electronics firms such as Apple, along with other technology firms such as Amazon, Google, Microsoft and Xiaomi, increasingly design their own processor chips, because these chips shape the user experience, AI performance, power efficiency and system-level differentiation. Manufacturing memory chips, by contrast, is extraordinarily capital-intensive; requires high precision, efficiency and production line utilization; and is dominated by a few incumbent suppliers.
Since 2000, the memory chip industry has moved through repeated cycles of overcapacity and undersupply: the post-dot-com collapse, the 2007-09 glut, the tighter 2010s after consolidation, the severe 2022-23 downturn, and the AI-driven tightness of 2024-25. This has led to high levels of concentration in the industry and chipmakers that are hesitant to add capacity. Producers often operate chip fabrication plants, or fabs, at or near capacity due to high fixed costs. The risk of having expensive facilities go underused keeps chipmakers from bringing new fabs online in lockstep with demand increases.
Consolidation has reduced the number of major suppliers, who now increasingly direct investment toward higher-margin products rather than broadly adding capacity. That shift is important for understanding why AI demand is tightening chip supplies even as demand for consumer electronics continues to grow. https://www.youtube.com/embed/1JkzrR-hznE?wmode=transparent&start=0 The most advanced computer chips are made with a machine manufactured by one Dutch company.
How the AI data center boom redirects capacity
The AI boom has changed memory demand from a broad consumer cycle into a more segmented market centered on high-bandwidth memory chips. In 2023, Micron cut capital spending and the company’s fabs operated below levels needed to justify their cost. By 2026, however, Micron was reporting strong AI demand, record data center DRAM revenue and rapidly rising high-bandwidth memory sales.
This shift matters because the market for supplying memory cannot respond quickly. Opening new fabs requires years of planning, large capital commitments and investments in advanced process equipment and skills. Memory chip manufacturers are likely to remain cautious about expanding capacity even as their profitability improves, with 2026 spending focused more on technology upgrades and high-value products than on large increases in chip supply.
In practical terms, AI is not simply lifting all memory demand equally; it is redirecting scarce capacity toward massive, or hyperscale, data centers and server markets first.
Can consumer electronics catch up?
Consumer electronics can catch up, assuming the manufacturers can weather the cost increases from tariffs and geopolitical pressures. One way they could is by making investments to enable small AI language models to run on consumer devices, a move analysts expect the companies to attempt.
Apple shifted a growing share of U.S.-bound iPhone production out of China to India and moved much of its iPad, Mac, Apple Watch and AirPods assembly for the U.S. market to Vietnam to lower the company’s tariff burden. Yet relocation does not eliminate cost pressure. Manufacturing iPhones in India still costs roughly 5% to 8% more than in China, and in some cases closer to 10%, because supplier ecosystems, logistics and production efficiency remain stronger in China.
Rising geopolitical tensions between the United States and China led to supply constraints and export controls on critical minerals and chip components, raising input costs for consumer electronics manufacturers. This led to higher total import costs and reduced margins for firms unable to pass costs fully to consumers, leading to further consolidation in supply.
Consumer devices do not need to replicate data center infrastructure to offer AI on their products. Their opportunity lies in running small language models on-device for summarization, rewriting, search, assistance and lightweight reasoning. Doing so, however, creates a distinct hardware requirement. Phones and laptops need to incorporate multiple functions on the same chip, combining processing capability with fast local memory and enough storage to keep on-device AI responsive. Apple’s current device requirements for the company’s AI, Apple Intelligence, also show that older phones often lack the compute power and memory needed for useful on-device AI.
To adopt AI, device makers need to redesign their products with higher-end chips – both processors and memory – that can piggyback on the AI model-oriented growth in the chips market driven by the data center boom. Such a shift by the device makers could also provide a useful backstop for the memory chipmakers in case the projected AI and data center growth does not materialize in the medium to long term, a boom-and-bust cycle that memory chipmakers have had to endure many times in the past.
What this means for the wider economy
The AI and data center boom is redistributing capital, supplier attention and pricing power across the broader economy. Sectors with limited purchasing leverage are especially vulnerable when chip supplies tighten. For example, medical technology accounts for less than 1% of the overall chip market, leaving essential equipment manufacturers exposed during shortages.
In contrast, sectors linked to power delivery and digital infrastructure may benefit from the boom because they try to keep up with demand for cloud services and electrification. The International Energy Agency estimates that data centers consumed about 415 TWh of electricity in 2024 and notes that AI is accelerating the deployment of high-performance servers, which implies stronger demand for the grid, storage, cooling and networking equipment around them.
For the consumer electronics industry, the strategic task is not to try to match the AI data centers chip for chip but to build differentiated, energy-efficient, on-device AI services while managing higher supply chain and tariff risks.
And for consumers looking to buy phones, games and laptops, because of high demand from data centers, the next few years are likely to bring higher prices, shortages and delayed product releases.
Vidya Mani, Associate Professor of Business Administration, University of Virginia; Cornell University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Nature
What in the Heck Is a Sweat Bee? Turns Out, My Wife Wasn’t Making It Up
My wife Rebecca said she thought a sweat bee stung her. I thought she was making it up. Turns out, sweat bees are very real—and their strange name actually makes perfect sense.
It started with a conversation with my wife, Rebecca.
She mentioned that she thought she’d been stung by something called a “sweat bee.”
My immediate reaction was basically:
“What in the heck is a sweat bee?”
I’ll admit it. For a moment, I thought she was making the whole thing up. 😂
A sweat bee? Really?
It sounded like one of those names somebody invents when they don’t know what actually stung them.
“It wasn’t a regular bee. It was a… uh… sweat bee!”
So naturally, I asked ChatGPT the same question: What in the heck is a sweat bee?
Well, Rebecca gets this round.
Sweat bees are absolutely real.
And Yes, They’re Interested in Your Sweat
Sweat bees belong primarily to the Halictidae family, a large group of generally small bees found around the world.
Some are rather ordinary-looking little insects, while others are surprisingly flashy, sporting metallic shades of green, blue, bronze or gold.
But here’s where they earned that wonderfully unfortunate name.
Some sweat bees are attracted to human perspiration.
They’re not after you because they’re angry, and they’re certainly not tiny vampire bees. They’re interested in the salt and minerals in your sweat.
In other words, after you’ve been outside working, gardening, exercising or simply trying to survive a hot summer afternoon, a sweat bee may look at you and think:
“Hey! Free electrolytes!”
Wait…They Can Sting Too?
Unfortunately for Rebecca, there’s another part of her story that checks out.
Female sweat bees can sting.
They’re generally not aggressive and aren’t flying around looking for people to attack. But if one gets trapped against your skin, squeezed or swatted, it may defend itself.
Their sting is generally considered relatively mild compared with those of many other bees and wasps—but “relatively mild” probably isn’t much consolation when you’re the person who just got stung.
So, Rebecca, I officially withdraw my skepticism.
Mostly.
Don’t Declare War on Them
As annoying as having a tiny bee land on your sweaty arm might be, sweat bees are actually beneficial insects.
They’re important pollinators, visiting wildflowers, garden plants and agricultural crops and carrying pollen from flower to flower.
So if one lands on you, gently brushing or blowing it away is probably a better idea than swatting it against your skin.
And that’s today’s unexpected nature lesson.
Sweat bees are real.
They really are attracted to sweat.
The females really can sting.
And, perhaps most importantly…
My wife was right.
There. I said it.
I’m sure I’ll never hear the end of this one. 😂
Related Links
- University of Arizona Cooperative Extension — Arizona Bee Identification Guide — A useful Arizona-focused guide that includes sweat bees and explains their appearance, size, nesting behavior and attraction to salt in perspiration.
- USDA Natural Resources Conservation Service — Native Bees and Their Favorite Flowers — More information about native pollinators and the important role sweat bees play around wildflowers.
- USDA Forest Service — Bee Basics — A broader guide to North American bees, including the colorful metallic members of the sweat bee family.
- Smithsonian National Museum of Natural History — Sweat Bee — See an actual female sweat bee specimen (Augochlorella aurata) and its scientific classification.
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Forgotten Genius Fridays
Forgotten Genius Friday: Marian Croak — The Inventor Behind the Way We Communicate
Marian Croak helped pioneer the technology behind internet calling and text-to-donate fundraising. With more than 200 U.S. patents, her innovations have transformed how millions of people communicate, work, and give.
Last Updated on August 7, 2026 by Daily News Staff
Every day, billions of people make video calls, join virtual meetings, send text-message donations during disasters, and stay connected with loved ones over the internet.
Few realize that one of the pioneers behind these technologies is Marian Croak, an engineer, inventor, and technology leader whose work has fundamentally changed how the world communicates.
Despite holding more than 200 U.S. patents and helping shape modern internet communications, Croak remains largely unknown outside the technology community. That’s exactly why she deserves a place in our Forgotten Genius Fridayseries.
From Engineering to Innovation
Marian Rogers Croak earned a bachelor’s degree from Princeton University before completing a Ph.D. in Social Psychology and Quantitative Analysis at the University of Southern California.
Her unique combination of engineering expertise and an understanding of human behavior would become one of her greatest strengths. Rather than simply building technology, she focused on solving real-world communication problems.
She joined Bell Labs, later becoming part of AT&T, where she spent decades developing new telecommunications technologies.
Helping Create the Internet Calling Revolution
For much of the twentieth century, telephone calls relied on dedicated telephone lines.
Croak helped pioneer technologies that made Voice over Internet Protocol (VoIP) practical, allowing voice conversations to travel over internet networks instead.
Today, VoIP powers countless services, including:
- Zoom
- Microsoft Teams
- WhatsApp calling
- FaceTime
- Internet-based business phone systems
- Telemedicine appointments
Millions of remote workers, students, families, and businesses depend on technologies that evolved from these innovations.
A Better Way to Help During Disasters
One of Croak’s most visible inventions came from a simple but powerful idea.
What if people could donate to disaster relief simply by sending a text message?
She led the development of systems that made text-to-donate campaigns possible.
Following disasters such as Hurricane Katrina and the devastating 2010 Haiti earthquake, millions of people contributed to relief efforts simply by sending a short text message. The technology helped raise tens of millions of dollars quickly, demonstrating how communication technology could save lives beyond making phone calls.
More Than 200 Patents
Croak has been awarded more than 200 U.S. patents covering internet communications, networking, emergency response systems, and digital collaboration.
Her inventions have influenced everything from enterprise communications to cloud networking and mobile technologies.
Leading Responsible Artificial Intelligence
In 2014, Croak joined Google as a Vice President of Engineering.
Today, she helps lead initiatives focused on Responsible AI and Human-Centered Technology, working to ensure artificial intelligence benefits society while addressing issues of fairness, accessibility, and trust.
Her career reflects an important lesson: innovation is not just about building powerful technology—it is also about building technology responsibly.
Honors and Recognition
Although Marian Croak spent decades working behind the scenes, her achievements have earned growing recognition.
Among her honors are:
- National Inventors Hall of Fame inductee
- National Academy of Engineering member
- American Academy of Arts and Sciences fellow
- IEEE Founders Medal recipient
These awards recognize a lifetime devoted to improving how people connect with one another.
Why Marian Croak Matters
Many inventors create products.
Marian Croak created possibilities.
Every internet phone call between grandparents and grandchildren, every virtual doctor’s appointment, every online business meeting, and every text-message donation during a humanitarian crisis reflects technologies she helped make possible.
Her story reminds us that some of history’s greatest innovators work quietly behind the scenes, changing the world without becoming household names.
That’s exactly the kind of legacy Forgotten Genius Friday exists to celebrate.
Related Links
- National Inventors Hall of Fame – Marian Croak — An excellent overview of Croak’s career, her work advancing VoIP, text-to-donate technology, and her induction into the Hall of Fame.
Learn more about Marian Croak at the National Inventors Hall of Fame - National Inventors Hall of Fame – The Problem-Solving Engineer — A deeper profile examining Croak’s path from an inquisitive young student to a telecommunications pioneer.
Read Marian Croak: The Problem-Solving Engineer - Google – Marian Croak — Croak’s official Google author and leadership profile, including her work in Responsible AI and Human-Centered Technology.
Explore Marian Croak’s work at Google - Google – Marian Croak’s Vision for Responsible AI — An interview exploring how Croak brought her decades of technological experience into the development of responsible artificial intelligence.
Read about Marian Croak’s vision for Responsible AI - Princeton University – Marian Croak and Innovation — Princeton highlights Croak, a member of its Class of 1977, and her contributions to VoIP, innovation, mentorship, and women in STEM.
Read Princeton’s profile featuring Marian Croak
🧠 Discover the remarkable innovators, inventors, and trailblazers who helped shape our world but rarely receive the recognition they deserve. Share your thoughts in the comments and subscribe to the STM Daily News newsletter to catch every new Forgotten Genius Friday feature and more inspiring stories delivered to your inbox.
The Knowledge
Exploring the Best Neighborhoods in Downtown Los Angeles
From the Arts District and Little Tokyo to the Historic Core and Bunker Hill, discover the best neighborhoods in Downtown Los Angeles and what makes each one worth exploring.
Last Updated on August 5, 2026 by Daily News Staff
The Best Neighborhoods in Downtown Los Angeles
Downtown Los Angeles has undergone one of the most remarkable transformations of any urban center in the United States. Once known primarily as the city’s business district, DTLA has evolved into a vibrant collection of neighborhoods, each offering its own unique character, history, dining, entertainment, and cultural experiences.
Whether you’re a first-time visitor, a longtime Angeleno, or planning your next weekend adventure, these are some of Downtown LA’s must-visit neighborhoods.
Arts District: Where Creativity Comes to Life
The Arts District has become one of the city’s most exciting destinations. Former warehouses have been transformed into lofts, art galleries, coffee shops, breweries, and award-winning restaurants.
Visitors can spend hours exploring colorful murals, browsing independent boutiques, and discovering public art around nearly every corner. It’s a neighborhood that celebrates creativity while preserving its industrial roots.
Perfect for: Art lovers, photographers, foodies, and nightlife.
Historic Core: A Walk Through Old Los Angeles
The Historic Core showcases Downtown LA’s architectural heritage. Along Broadway and surrounding streets, beautifully restored theaters, historic hotels, and early 20th-century buildings tell the story of a booming city during Hollywood’s Golden Age.
Highlights include the iconic Bradbury Building, Grand Central Market, and numerous rooftop restaurants overlooking the skyline.
Perfect for: History buffs and architecture enthusiasts.
South Park: Entertainment Central
South Park is home to some of Los Angeles’ biggest attractions, including LA Live and Crypto.com Arena. The neighborhood has added thousands of apartments, new restaurants, hotels, and entertainment venues over the past two decades.
Whether you’re attending a Lakers game, a concert, or simply enjoying dinner before an event, South Park offers something for everyone.
Perfect for: Sports fans, concerts, and nightlife.
Little Tokyo: A Cultural Treasure
One of only a handful of historic Japantowns remaining in the United States, Little Tokyo offers authentic Japanese cuisine, specialty shops, cultural events, museums, and peaceful gardens.
From fresh sushi and ramen to Japanese bakeries and tea houses, visitors can experience generations of cultural heritage in just a few city blocks.
Perfect for: Families, food lovers, and cultural exploration.
Bunker Hill: Downtown’s Cultural Heart
Bunker Hill combines modern architecture with world-class arts and culture. Home to Walt Disney Concert Hall, The Broad, the Museum of Contemporary Art, and Grand Park, this neighborhood is ideal for visitors looking to experience Downtown’s artistic side.
Its dramatic skyline and public spaces also make it one of the most photographed areas in Los Angeles.
Perfect for: Museum lovers and architecture fans.
Financial District: The Skyline of Los Angeles
Glass skyscrapers, luxury hotels, and bustling sidewalks define the Financial District. While it remains the city’s business center during the workweek, the neighborhood also offers excellent dining, rooftop lounges, and convenient access to other parts of Downtown.
Chinatown: Tradition Meets Modern LA
Los Angeles’ Chinatown blends rich history with a growing collection of contemporary restaurants, galleries, and community events. Visitors can enjoy traditional cuisine alongside modern culinary experiences while exploring one of the city’s oldest cultural neighborhoods.
Fashion District: A Shopper’s Paradise
Covering more than 100 city blocks, the Fashion District is one of the largest garment centers in the country. Whether you’re searching for fabrics, clothing, accessories, or bargains at Santee Alley, this neighborhood attracts shoppers from across Southern California.
A Downtown That Continues to Evolve
Downtown Los Angeles isn’t just one destination—it’s a collection of neighborhoods that reflect the city’s diversity, creativity, and resilience. From historic landmarks and world-class museums to vibrant street art and internationally inspired cuisine, DTLA offers something new around nearly every corner.
Whether you’re planning a day trip or an extended visit, exploring these neighborhoods is one of the best ways to experience the energy and history of Los Angeles.
Related External Links
- Discover Los Angeles – Explore Downtown LA
- Grand Central Market
- The Broad Museum
- Walt Disney Concert Hall
- Japanese American National Museum (Little Tokyo)
- Arts District Los Angeles
- LA Live
- LA Metro – Getting Around Downtown Los Angeles
- Olvera Street and El Pueblo Historic Monument
- Visit California – Los Angeles Travel Guide
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