South Korea’s AI Supercomputer Delayed to 2026 Due to AI Chip Shortages

South Korea’s ambitious AI supercomputer project, Supercomputer No. 6, has been delayed to 2026 due to a shortage of high-end AI chips, highlighting the global strain on chip supplies driven by the surging demand for AI technology.

Global Chip Demand Halts Progress

As nations and corporations rush to develop advanced AI infrastructure, the demand for AI chips from manufacturers like NVIDIA and AMD has skyrocketed, causing significant supply chain bottlenecks. South Korea, known for its technological prowess, planned to invest 2.9 trillion won ($2 billion) into the Supercomputer No. 6 project to enhance AI computing capabilities for researchers and professionals. However, the inability to procure chips has created a “computing crisis” as existing supercomputers run at nearly 90% utilization.

Broader Implications

The global AI frenzy continues to drive competition among nations, with countries like the US and those in the Middle East making AI development a national priority. While this trend benefits chipmakers, it also intensifies the competition for scarce resources, pushing up costs and delaying projects worldwide.

The delay underscores the challenges nations face in keeping pace with the rapid growth of AI, even as South Korea remains committed to advancing its position in the global AI race.