AI Chip Demand Puts Pressure on Smartphone and PC Semiconductor Supply, Siltronic CEO Says
Growing demand for artificial intelligence chips is putting pressure on semiconductor supply for other electronics markets, including smartphones and personal computers. Siltronic CEO Michael Heckmeier told Reuters on November 4, 2026, that chip manufacturers are directing more production capacity towards AI-related applications, leaving less supply available for other segments.
The comments came as Siltronic raised its annual sales forecast for the second time this year, citing stronger demand for silicon wafers. The development highlights how the expansion of AI infrastructure is reshaping demand across the wider semiconductor industry, extending its impact beyond processors and data centre hardware.
AI Chip Demand Changes Semiconductor Supply Priorities
According to Heckmeier, semiconductor manufacturers are prioritising customers serving the AI market because they can offer higher prices for limited chip supplies. Large cloud computing companies, known as hyperscalers, have particularly strong purchasing power, making AI-related applications more attractive to manufacturers.
This shift is creating supply constraints in other semiconductor markets. Heckmeier said some non-AI segments could experience stronger growth if more chips were available to meet their requirements.
The impact is not limited to the number of AI servers being produced. According to the Siltronic CEO, AI server farms consume approximately three to four times more silicon wafer area than traditional servers, increasing demand for advanced semiconductor materials.
As manufacturers allocate more capacity to AI-related products, smartphone and PC suppliers face greater competition for available semiconductor resources.
Siltronic Raises Its 2026 Sales Forecast
The increased demand for semiconductor wafers has also benefited Siltronic, a German manufacturer of silicon wafers used in chip production.
On November 4, the company raised its full-year 2026 sales guidance, expecting revenue to reach the previous year's level. Its earlier forecast had anticipated a decline in sales in the low-to-mid single-digit percentage range.
Siltronic reported revenue of €355.4 million in the third quarter of 2026, representing a 10.5% increase compared with the previous quarter. Sales during the first nine months reached €983.5 million, slightly exceeding the corresponding period in 2025.
The company attributed the stronger performance to increased wafer volumes and favourable currency movements. Demand for both 300 mm and 200 mm wafers contributed to the improvement.
Siltronic also refined its expected full-year EBITDA margin to between 22% and 24%, compared with its previous range of 20% to 24%.
AI Infrastructure Growth Reshapes Other Chip Markets
The growing demand for AI computing is creating new opportunities for semiconductor manufacturers while placing pressure on other electronics segments. Data centres require substantial quantities of advanced chips and supporting materials, encouraging manufacturers to direct more resources towards customers involved in AI infrastructure.
Heckmeier said the current market does not show signs of a slowdown in AI demand. However, he suggested that even if demand moderates, semiconductor capacity could gradually return to smartphones, PCs and other markets where underlying demand remains solid.
The development illustrates how investment in AI infrastructure is influencing the broader semiconductor supply chain. While AI remains a major source of industry growth, the availability of manufacturing capacity and materials will continue to shape the performance of other electronics markets.
