Kearney Report Highlights AI's Impact on Semiconductor Supply

Kearney, in collaboration with SEMI, has released the State of Semiconductors 2025 report, highlighting the increasing demand for semiconductors driven by AI applications and the resulting supply challenges. The report, announced in a press release, indicates that AI server demand is growing at a 40-50% compound annual growth rate, consuming both advanced and mature nodes.

The report also points out that trade barriers are creating a structural divide between Eastern and Western semiconductor ecosystems. This division is impacting buyer confidence, with only 65% of semiconductor leaders feeling secure about supply, a significant drop from 82% last year. Furthermore, 42% of these leaders anticipate shortages in advanced-node semiconductors.

Kearney emphasizes that product design is a critical factor in improving supply chain resilience. The report covers various industry trends, including servers, consumer electronics, and automotive sectors, and provides an analysis of company performance and node size consumption. The findings underscore the importance of strategic planning and adaptation in the face of geopolitical tensions and AI-driven demand.

Kearney and SEMI stress the need for semiconductor manufacturers and purchasers to enhance their supply chain resilience to maintain a competitive edge in the rapidly evolving market.