BT warns of smartphone price rises due to chip shortages from AI boom

Key points

• BT has said the cost of smartphones could rise as technology companies buy up semiconductor chips because of the boom in artificial intelligence, putting pressure on supply chains.
• The telecoms company’s chief executive, Allison Kirkby, said she was anticipating shortages as tech firms bought large quantities of memory chips to power the datacentres relied on by AI.
• Kirkby said: “It’s common knowledge that the chip market is under demand by the rise in AI.
• We are working very proactively with our suppliers.” Price increases would mainly hit smartphone handsets, she said, but could also affect the cost of routers.
• Memory chips are essential for almost every modern item of electronics and are also used in other important components such as graphics cards.