Generative AI Drives Transformational Growth in Semiconductor Industry
The global generative AI market is rapidly evolving, leading to unprecedented changes in the semiconductor industry. According to the latest AI Chips Special Report from DIGITIMES Research, the substantial computational power required for training and inference of generative AI models is making AI chips a central focus in this transformation.
Key Insights from DIGITIMES Research
- AI Chips in High Demand: The need for high-performance AI accelerators in cloud data centers and edge AI device chips is growing, driven by privacy concerns. This trend signals a robust growth period for both hardware and software opportunities within AI applications.
- Wafer Foundries’ Role: Advanced manufacturing technologies and the capabilities of wafer foundries are crucial to meeting the accelerating computing demands of AI chips.
Cloud-Based AI as a Catalyst
- The development of generative AI is primarily led by cloud-based applications. Wafer foundries are enhancing their processes and packaging capabilities, with strong demand for AI servers in cloud data centers. Analyst Stella Weng predicts a compound annual growth rate (CAGR) of 44% for high-end GPUs and 52% for cloud ASIC accelerators from 2023 to 2028.
- Weng emphasizes that the period from 2022 to 2024 will be critical for cloud AI accelerators, although growth in AI server demand may slow down as providers refine their infrastructures.
Wafer Foundries’ Expansion
- In response to the strong demand for cloud and edge AI chips, wafer foundries are accelerating the expansion of advanced processes and packaging capacities. Analyst Eric Chen forecasts a CAGR of 23% for advanced process expansion below 5 nanometers from 2023 to 2028.
- AI chips heavily rely on TSMC’s CoWoS packaging technology, with its capacity expansion expected to exceed 50% during the same period. To enhance performance and meet shipping needs, wafer foundries are advancing technologies in photolithography, new transistor structures, and advanced packaging techniques.
Generative AI Applications on the Rise
- The transition from cloud-based services to edge deployments is accelerating, with smartphones and PCs leading the way in adopting generative AI technologies. Analyst Jim Chien anticipates that global shipments of generative AI smartphone application processors (APs) will reach 260 million units in 2024, potentially rising to 800 million units by 2028, achieving a CAGR of 65%.
- With this growth, approximately 240 million AI smartphones are expected to ship in 2024, aiming for over a 50% penetration rate by 2028.
AI PC Market Development
- Analyst Joyce Chen notes that in 2024, hardware and software vendors are testing the AI PC market. By 2025, advancements in PC processors will lead to a new wave of growth in AI PCs, aided by Microsoft’s new Copilot products.
- AI PC processor shipments are projected to approach 50 million units in 2024, with an increase to 150 million units by 2028, reflecting a shipment CAGR of 39%.
Future Outlook
As AI applications expand, significant business opportunities will arise, transforming technology and capacity demands and intensifying competition within the semiconductor market. These changes promise to lead to unprecedented developments in the semiconductor ecosystem.
