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Chipmakers face a looming crisis in labour

A human worker shortage may turn out to be the biggest obstacle to the AI industry

When will artificial intelligence start to replace human workers in a more significant way? This is a question that has become the subject of much speculation amid the AI boom. But long before we need to worry about that happening, a human worker shortage may turn out to be the biggest obstacle to the AI industry.

Sales at the world’s largest chipmaker and the maker of chips that power the AI revolution, Taiwan Semiconductor Manufacturing Company, rose 45 per cent in July to $7.9bn, adding to rapid growth in the second quarter. Demand for AI chips remains strong with its high-performance computing business accounting for more than half of TSMC’s revenue last quarter

Despite these stellar numbers, AI related stocks have been volatile in recent months, making investors increasingly wary of the risks at companies like TSMC — from Taiwan’s earthquakes to China-Taiwan tensions and broader geopolitical stresses. Less discussed, but just as important, is a looming crisis in shortages of engineers and technicians.

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