AI Market Growth Sparks Semiconductor Transformation in 2024
- The semiconductor industry is experiencing transformation due to the generative AI market, with significant growth expected in high-end GPUs and cloud ASIC accelerators.
- Wafer foundries are expanding advanced processes and packaging capacities to meet the rising demand for AI chips.
- The deployment of AI applications is set to create substantial business opportunities and intensify competition in the semiconductor market.
In Taiwan, on October 7, 2024, DIGITIMES Research released a report highlighting the rapid transformation of the semiconductor industry driven by the generative AI market. The report emphasizes the increasing reliance on substantial computing resources for training and inference of generative AI models, with cloud-based AI leading the charge. Analysts forecast significant growth in high-end GPUs and cloud ASIC accelerators, with respective compound annual growth rates (CAGR) of 44% and 52% from 2023 to 2028. Wafer foundries are responding to this demand by expanding advanced processes and packaging capacities, particularly focusing on technologies like TSMC's CoWoS packaging. The report also predicts a surge in shipments of generative AI application processors (APs) in smartphones, with expectations of reaching 260 million units in 2024 and potentially 800 million by 2028. The AI PC market is also set for growth, with shipments of AI PC processors projected to approach 50 million units in 2024. Overall, the deployment of AI applications is expected to create substantial business opportunities, transforming the semiconductor ecosystem and intensifying competition in the chip market.