The Infrastructure Thesis

  AI is often described as a race for better algorithms and faster processors. But behind the rapid progress of AI lies a complex global supply chain. Building modern AI systems requires far more than designing powerful chips. It involves a network of industries working together: semiconductor foundries, memory manufacturers, advanced packaging providers, equipment suppliers, and data center infrastructure companies. Each layer depends on the others. When one part of the chain slows down, the entire system feels the impact. This interdependence makes the AI supply chain more fragile than it appears. Consider the components required to build a modern AI accelerator. The processor itself must be fabricated at advanced semiconductor nodes. High-bandwidth memory must be manufactured and stacked using specialized processes. Advanced packaging is required to integrate the processor and memory into a single module. Finally, the finished hardware must be insta...