No chips, no AI. Why new factories are a big deal.

Albin Xavier

Fri, 25 Jul 2025

Why Does AI Need New Hardware?

AI needs powerful chips to run. Without them, it slows down. In 2025, new factories are being built. Let’s see how this fuels AI’s growth.

• Chips power AI models.

• Demand is growing fast.

• New factories are key.

The Big Chip Plan

SoftBank’s betting big on AI chips. Their project is massive. It’s called Crystal Land. It’s a game-changer for 2025.

• $100 billion for U.S. chip factory Crescendo.ai, June 2025.

• Involves TSMC and Samsung.

• Aims to lead AI hardware.

Why Chips Matter

AI chips make models faster. Big tech and startups need them. Better chips mean better AI. Here’s how it works.

• Nvidia supplies most AI chips.

• Example: Faster chips cut AI training time.

• Supports smarter apps and services.

Who Benefits?

New factories help everyone. The U.S. gains tech power. Companies get more chips. It’s a win-win situation.

• Big tech builds better AI.

• Startups access cheaper chips.

• Example: Faster cloud AI for all.

Any Risks?

Building factories takes time. Supply chains can break. Costs are high. Here’s what could go wrong.

• Delays slow AI progress.

• Example: Chip shortage stalls projects.

• Global politics might interfere.

Your Takeaway: Why Chips Affect You

AI chips power the tech you use. Faster chips mean better apps and services. Keep an eye on this—it could make your tech life smoother.

• Expect faster AI in devices.

• Watch for chip supply updates.

• Benefit from smarter tech soon.