A report suggests that the increasing demand for AI could lead to a global chip shortage.

• The next global chip shortage could be caused by a rise in demand for semiconductors and AI-enabled devices, predicts Bain & Company.
• During the Covid-19 pandemic, a major semiconductor shortage occurred due to supply chain disruption and increased demand for consumer electronics as people were forced to stay at home.
• Bain & Company predicts that the combination of increasing demand for graphics processing units (GPUs), AI-enabled devices, and geopolitical factors could lead to the next semiconductor shortage.

The next global chip shortage could be caused by a rise in demand for AI-focused semiconductors and AI-enabled devices, predicts a report released by Bain & Company on Wednesday.

During the Covid-19 pandemic, a major semiconductor shortage occurred due to supply chain disruption and increased demand for consumer electronics as individuals were forced to stay and work from home.

GPUs, which are crucial for training large AI models, have been acquired by technology giants from data centers. These GPUs are used in applications like OpenAI's ChatGPT.

AI-enabled devices are being designed by companies such as and are being released by Samsung and other companies. These devices allow smartphones and personal computers to run AI applications locally rather than via an internet connection in the cloud.

A chip shortage could result from the increased demand for GPUs and AI consumer electronics, according to Bain.

The high demand for GPUs has resulted in shortages in certain parts of the semiconductor industry, according to Anne Hoecker, head of the technology practice in the Americas at Bain & Company, who shared this information with CNBC via email.

"The combination of increasing demand for GPUs and the proliferation of AI-enabled devices could lead to more frequent PC product refreshes, potentially resulting in broader semiconductor supply constraints."

The demand for AI-enabled gadgets is uncertain due to consumers' cautious approach towards them.

The semiconductor supply chain is "extremely intricate," and a demand increase of approximately 20% or more has a high probability of disrupting balance and resulting in a chip shortage, according to Bain & Company.

The report stated that the rapid growth of AI technology in large markets could exceed the threshold, resulting in weak points in the supply chain.

The semiconductor supply chain involves multiple companies, with Nvidia designing GPUs that are manufactured by Taiwan Semiconductor Manufacturing Co. in Taiwan. TSMC sources chipmaking tools from countries worldwide, including the Netherlands. Only large-scale production of cutting-edge chips can be achieved by TSMC and Samsung Electronics.

The chip shortage could be caused by geopolitical factors, as governments worldwide consider semiconductors strategic technology. The U.S. has been attempting to limit China's access to advanced chips through export restrictions and sanctions, while also increasing its domestic semiconductor production capacity.

Bain & Company warned that geopolitical tensions, trade restrictions, and multinational tech companies' decoupling of their supply chains from China pose serious risks to semiconductor supply. Delays in factory construction, materials shortages, and other unpredictable factors could also create pinch points.