AI is redefining global value chains by clustering production in regional hubs, reshaping where value is created and who governs production. The emergence of key AI centers, such as Silicon Valley and Penang, highlights a significant shift where 30 countries dominate AI chip manufacturing, leaving many nations without access to advanced AI capabilities. This transition leads to greater dependency on regional hubs and alters the logistics and governance of supply chains. Despite increased automation, human roles become more crucial, focusing on tasks that require unique human skills. Firms must adapt to these changes to maintain competitive advantages.