China's AI suppliers can't keep up as critical component shortages hit production

Chinese AI hardware suppliers are struggling to keep up with surging demand because key components and manufacturing capacity are in short supply.

Companies are stockpiling chips, circuit boards and raw materials, and some are shifting production to Thailand and Vietnam to ease pressure.

Industry watchers expect the bottlenecks to last through 2026, while new AI model launches could drive even more demand.

The shortages may slow China’s AI infrastructure buildout and limit how fast suppliers can scale output.