# The hidden supply chain costs of the AI boom

- URL: https://talkfuse.com/story/the-hidden-supply-chain-costs-of-the-ai-boom/
- Published: 2026-11-05T15:00:00+00:00
- Updated: 2026-11-05T15:21:34+00:00
- Original publisher: The Verge
- Original article: https://www.theverge.com/podcast/1024438/willy-shih-supply-chain-ai-chips-ram-where-does-my-stuff-come-from-book
- Topics: AI, Technology

## Key points

- AI is intensifying demand for computing resources.
- Factories depend on infrastructure and supplier networks.
- China remains central to global manufacturing.

## Summary

The interview with economist Willy Shih examines how global supply chains shape manufacturing and the current AI boom. Shih argues that political plans to reshore production can overlook the infrastructure and supplier networks factories need, while AI’s rapid expansion is putting pressure on computing resources.

Drawing on examples including Foxconn’s abandoned Wisconsin factory plan and past chip shortages, Shih discusses why China remains a manufacturing powerhouse despite concerns about reliance on it. His forthcoming book, *Where Does My Stuff Come From?*, explores the economics behind these complex systems, which the interview says politicians and regulators often ignore.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.