Willy Shih Explains the Hidden Supply Chain Costs of the AI Boom

What happened

On The Verge’s Decoder, host Nilay Patel interviews economist and Harvard Business School professor Willy Shih about global supply chains and his upcoming book, Where Does My Stuff Come From? Shih explains how tariffs prompt companies to reroute production, why China remains central to manufacturing, and how AI demand for memory chips differs from trade disruptions because demand has outstripped capacity.

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The story so far

On The Verge’s Decoder, Harvard Business School professor Willy Shih discussed how tariffs, manufacturing shifts, and AI infrastructure demand affect global supply chains. He said companies respond to tariffs by rerouting production, while China remains central to manufacturing. He described AI’s demand for memory chips as different from trade disruptions: demand has outstripped capacity. The interview also covered Shih’s upcoming book, Where Does My Stuff Come From?, and the role of market forces in shaping supply chains.