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.
Dive into “The Knowledge,” where curiosity meets clarity. This playlist, in collaboration with STMDailyNews.com, is designed for viewers who value historical accuracy and insightful learning. Our short videos, ranging from 30 seconds to a minute and a half, make complex subjects easy to grasp in no time. Covering everything from historical events to contemporary processes and entertainment, “The Knowledge” bridges the past with the present. In a world where information is abundant yet often misused, our series aims to guide you through the noise, preserving vital knowledge and truths that shape our lives today. Perfect for curious minds eager to discover the ‘why’ and ‘how’ of everything around us. Subscribe and join in as we explore the facts that matter. https://stmdailynews.com/the-knowledge/
Science
Seeing an eclipse from Earth is awe‑inspiring – for astronauts seeing one from space, the scene was even more grand
Discover the stunning eclipse seen by Artemis II astronauts during their 2026 Moon mission. A truly extraordinary spectacle awaits.
Deana L. Weibel, Grand Valley State University
The astronauts on Artemis II’s trip to the Moon in April 2026 didn’t just have an amazing journey through space. They also saw something extraordinary. They were the first humans to see a total solar eclipse from space.
A solar eclipse happens when the Moon moves in front of the Sun. In a total eclipse, the Sun’s central disc is covered completely.
From Earth, the circle of the Sun is about the same size as the circle of the Moon. With the bright circle blocked, you can see the undulating rays of the Sun’s corona, or outer atmosphere, that are normally too dim to be observed.
I’m a cultural anthropologist who studies awe-inspiring aspects of space exploration. I have been lucky enough to have seen two total solar eclipses. The first one was in Nebraska in 2017, the second in Indiana in 2024.
During my second total eclipse, the period of totality – that short span when you can remove your protective glasses and look directly at the eclipse – lasted close to 4 minutes. I saw waves of diffuse light snaking around an ink-black hole in the sky. It looked very wrong – almost alien.
On Aug. 12, 2026, there will be another total solar eclipse, visible only from Greenland, Iceland, Spain and the Balearic Islands of the Mediterranean. Some fortunate viewers in Spain and nearby islands may see the eclipse just before sunset, low on the horizon. The Moon illusion, a phenomenon where the Moon looks bigger when it’s near the horizon, might make this eclipse look unusually large.
Unusual eclipse perspectives
Astronauts will occasionally also have less common eclipse experiences. I interviewed one I call by the pseudonym “Jackie” in my research about astronauts’ experiences of awe. She was part of an astronaut training group that did a flight exercise during a total solar eclipse.
Jackie and her squad flew their jets in the shadow of the Moon. This lengthened their time in totality because they could follow and stay within the shadow. Jackie was most impressed with how the Sun’s corona seemed to shift and ripple.
“It’s not static … it’s alive,” she told me.
On April 6, 2026, the astronauts of NASA’s Artemis II mission saw another kind of unusual eclipse as they flew around the Moon. At one point during their flight, the Moon and the spacecraft aligned so that the Moon was directly between them and the Sun, blocking the Sun’s disk in a way that looks very different from what we see on Earth.
Astronaut Victor Glover said it felt like they “just went sci-fi.” https://www.youtube.com/embed/YLjPci5bo1k?wmode=transparent&start=0 ‘An impressive sight’: The Artemis II crew were the first humans to observe a solar eclipse from near the Moon.
The astronauts were so close to the Moon that the Moon looked bigger than the Sun and hid more of its bright circle. Earth was also in view, and sunlight reflected from the Earth onto the Moon in a phenomenon NASA calls “earthshine.” This dim light is very similar to the moonlight that shines on the Earth at night.
Imagine the Sun hidden behind the Moon, creating a hazy halo around the Moon’s edges. At the same time, faint light reflected from Earth softly illuminates the Moon, revealing mountains and craters in a dim twilight. Now imagine this striking scene lasting 54 minutes.
This sight was, without a doubt, one of the most unusual eclipses ever seen by human eyes.
Although Artemis’ astronauts are trained to think scientifically, this experience propelled them into a state of awe. They talked openly about how their brains were “not processing” what they observed. While NASA kept them busy with a variety of tasks, the sound of emotion and excitement in their voices as they broadcast live from their lunar flyby was unmistakable.
The psychology of awe
Researchers have studied the effects of awe on the human brain, including awe felt during solar eclipses. Moments of wonder like these can transform how you feel and even how you think, making you more thoughtful and open-minded.
In my own work I’ve found these experiences can change how astronauts understand their own place in the universe.
One astronaut said she gained an awareness of the fragility of our planet that now shapes everything she does, while another described becoming more curious after returning to Earth. A third said the awe he experienced in lunar orbit changed his understanding of time and infinity.
Space travel creates many opportunities for awe, but a solar eclipse from behind the Moon, as Mission Commander Reid Wiseman put it, required “20 new superlatives.”
It’s an experience most of the earthbound eclipse-chasers heading to Greenland or Iceland or Spain this summer will only dream about. Whether eclipses happen in space or on Earth, though, close encounters with the grandeur of our universe can make you feel profoundly human.
Deana L. Weibel, Professor of Anthropology, Grand Valley State University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Dive into “The Knowledge,” where curiosity meets clarity. This playlist, in collaboration with STMDailyNews.com, is designed for viewers who value historical accuracy and insightful learning. Our short videos, ranging from 30 seconds to a minute and a half, make complex subjects easy to grasp in no time. Covering everything from historical events to contemporary processes and entertainment, “The Knowledge” bridges the past with the present. In a world where information is abundant yet often misused, our series aims to guide you through the noise, preserving vital knowledge and truths that shape our lives today. Perfect for curious minds eager to discover the ‘why’ and ‘how’ of everything around us. Subscribe and join in as we explore the facts that matter. https://stmdailynews.com/the-knowledge/
Food and Beverage
Lifesum Survey: 90% Say Ultra-Processed Foods Are Engineered to Be Hard to Stop Eating
A new nationally representative survey from health app Lifesum suggests Americans increasingly view ultra-processed foods (UPFs) as more than a “willpower” issue. The research, based on responses from 2,000 U.S. adults, found 90% believe UPFs are intentionally engineered to be hard to stop eating—while 81% say they’ve personally felt unable to stop once they start.
Ultra-Processed Foods Under Fire: New Data Shows Regret, Loss of Control, and Calls for Regulation
The survey also points to a widespread “control and regret” loop: 67% report they’ve tried and failed to cut back on certain ultra-processed foods, and 80% say they feel regret or frustration after eating them. The findings land as UPFs remain a dominant part of the American diet—federal dietary data indicates more than half of calories consumed in the U.S. come from ultra-processed foods, and high consumption has been linked in multiple studies to higher risks of obesity, type 2 diabetes, and cardiovascular disease.
Lifesum says the data reflects shifting public attitudes toward stronger oversight. In the survey, 81% support clearer warning labels on ultra-processed foods, 59% support restrictions on marketing, and 47% support regulation similar to tobacco or alcohol. The release also cites a recent report from researchers at Harvard University, the University of Michigan, and Duke University arguing that UPFs share similarities with cigarettes—such as engineered reward pathways and marketing designed to drive repeat consumption—strengthening the case for tighter regulation.
What to watch for
- Labeling momentum: With 81% backing warning labels, expect more debate over front-of-package disclosures and clearer definitions of “ultra-processed.”
- Marketing restrictions: The 59% support level signals potential policy focus on advertising practices—especially around kids and high-frequency digital targeting.
- Regulation framing shift: The 47% support for tobacco-style rules suggests UPFs may increasingly be discussed as a public health and consumer protection issue, not just nutrition advice.
- Scientific scrutiny vs. industry response: As more researchers compare UPFs to cigarettes, watch for counter-messaging from food manufacturers and lobbying around how UPFs are categorized.
- Consumer behavior tools: Demand may grow for evidence-based guidance and tracking tools (apps, labeling systems, education campaigns) that help people reduce UPF intake without relying solely on self-control.
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The Knowledge
“The Woman Who Invented the Home Security System”
Before smart homes, Marie Van Brittan Brown invented the first home security system in 1966—pioneering safety tech that still protects millions today.
Last Updated on May 1, 2026 by Daily News Staff
Part of the “Forgotten Genius Fridays” series from The Knowledge
🚨 Before Ring, There Was Marie Van Brittan Brown
Long before smart doorbells and mobile alerts became the norm, a nurse from Queens was already thinking ahead.
In 1966, Marie Van Brittan Brown, a Black woman living in New York City, felt unsafe in her neighborhood. Her husband, Albert, worked late hours, and she was often home alone. With crime on the rise and no real way to know who was at the door, she took matters into her own hands.
So she did what few people would think to do:
Home Security System
She invented the modern home security system.
🛠️ How It Worked
Marie and Albert Brown designed a closed-circuit television system with:
A camera mounted on the door Peepholes at different heights A live-feed monitor inside the home A microphone for two-way communication And a panic button to instantly alert the police.
In 1969, they were granted U.S. Patent No. 3,482,037, and that system laid the foundation for many of today’s smart home security tools.
📄 View the original patent here
Check out this Link: Marie Van Brittan Brown and Albert L. Brown ( Wikipedia)
🔄 Lasting Impact
Marie’s invention wasn’t just revolutionary—it was personal. Her system was designed for peace of mind, especially for women and families in vulnerable communities. Today, elements of her design show up in everything from Ring and Nest to intercom-equipped apartment doors.
She didn’t just protect her home—
she helped create the smart home.
🎥 Watch the full short video (under 75 seconds):
👉 YouTube Shorts – The Knowledge
📱 TikTok & Reels: @stmdailynews
🧠 Now you know.
— STM Daily News
Dive into “The Knowledge,” where curiosity meets clarity. This playlist, in collaboration with STMDailyNews.com, is designed for viewers who value historical accuracy and insightful learning. Our short videos, ranging from 30 seconds to a minute and a half, make complex subjects easy to grasp in no time. Covering everything from historical events to contemporary processes and entertainment, “The Knowledge” bridges the past with the present. In a world where information is abundant yet often misused, our series aims to guide you through the noise, preserving vital knowledge and truths that shape our lives today. Perfect for curious minds eager to discover the ‘why’ and ‘how’ of everything around us. Subscribe and join in as we explore the facts that matter. https://stmdailynews.com/the-knowledge/
