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Rapid growth in AI is driving demand for high tech superconductors, and creating shortages of less powerful chips used in such things as computers, consumer electronics and smart phones.
The surge in demand has already spurred panic buying and driven up global prices for all types of chips.
Technology Users Association (TUANZ) chief executive Craig Young said chip shortages were likely to affect all manner of consumer electronics, with New Zealanders likely to pay more for consumer electronics, with potential for supply shortages.
"There are some examples of international chip makers increasing prices, up to 60 percent and not for the high end stuff," Young said.
"That is going to cause an issue for us, particularly for those of us trying to keep up with technology and the demands that it makes."
He said the price increases and potential shortages were likely to become obvious in the new year, once current inventories run out.
"We won't necessarily see an increase before Christmas, but I'm expecting that in the new year, and particularly as we have to restock after Christmas."
Global automakers were also scrambling to find and stockpile tech chips as a semiconductor supply crunch was triggered in late October after the Dutch government banned chipmaker Nexperia from exporting products to its Chinese parent company Wingtech, which had been flagged as a possible national security risk by the United States.
Young said New Zealand had seen this type of shortage before.
"We saw this also during Covid, where there was a real shortage of those particular chip sets that are used for specific items like . . . heated seats in cars.
"But it's not just that. It's actually the chips that are inside the car that keep it running, that keep an eye on things."
Technology research group IDC said tariff negotiations and policy uncertainties had been affecting supply chains, investment, and costs, with global revenues for AI chips expected to exceed $1 trillion a year by 2028.
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