Figure 1.9 ⊳ Select AI infrastructure and types of applications IEA. CC BY 4.0. AI is supported by a highly complex global supply chain These AI-focused chips, in turn, are manufactured using highly complex machines. Advanced extreme ultraviolet lithography machines, such as those produced by ASML, are crucial for creating the intricate circuit patterns on AI-focused chips. This process involves using light to etch switches onto silicon wafers. ASML, headquartered in the Netherlands, is the market leader in manufacturing these machines. The optical systems – which are among the most critical of the core components of ASML’s lithography machines – are, in turn, manufactured by the German company Carl Zeiss. These are only a few of the key components that enable AI. The supply chains of various other parts of the puzzle, such as silicon wafers and data centre cooling systems, are also highly international. AI is therefore a global enterprise, even as parts of it are heavily concentrated in certain regions.
This whole section on the supply chain is really good (and specifically what the IEA is quite good at) - and also an amusing reminder of how severe the self-own was when big tech CEOs cuddled up to Donald Trump and are now facing tariff nightmares on their promised magic AI growth