A global chip shortage is affecting various sectors of industry from gaming to automotive and cryptocurrency mining.

Amidst Bitcoin's (BTC) ongoing bull run, the crypto mining industry became massively profitable. Many miners started aggressively stacking mining hardware —past sometimes unconventional methods— which led to shortages in other sectors.

The COVID-19 fueled surge in gaming consoles, computers and TVs has fifty-fifty had knock-on effects for auto manufacturers, who are major consumers of silicon semiconductors. Chip shortages have fifty-fifty led General Motors to shut down iii plants and wearisome product at others.

Amidst this shortage, Chinese internet giant Baidu is reportedly raising money for a standalone artificial intelligence chip company.

Co-ordinate to a Feb. 10 study by CNBC, major venture capital firms like IDG Majuscule and Gold Gate Ventures, or GGV, are among potential investors in Baidu'due south upcoming semiconductor house. Both IDG and GGV are known for notable contributions to the blockchain industry, with IDG bankroll companies like KuCoin, and GGV supporting one thousand thousand dollar funds for crypto startups.

Co-ordinate to CNBC, the potential chip company would be a subsidiary with Baidu every bit the majority shareholder. The new semiconductor business concern would aim to sell chips to customers beyond several industries, including automakers.

Baidu is already running a proprietary chit unit, developing its Kunlun semiconductors. Yet, this unit is not enough to commercialize its technology, CNBC said, citing anonymous people familiar with the matter.

Baidu did not immediately respond to Cointelegraph's request for annotate.

The latest news comes amidst Baidu'due south Nasdaq-traded shares hitting new all-time highs above $295 on February. ix. A number of global semiconductor companies similar Nvidia accept seen their stocks climb recently.