Rise of Cloud and Edge AI Applications Paves Way for New Semiconductor Opportunities: DIGITIMES Research
The Rise of Cloud and Edge AI Applications Paves Way for New Semiconductor Opportunities, Wafer Foundries Become Crucial, Says DIGITIMES Research
TAIPEI, Oct. 7, 2024 /PRNewswire/ — The global generative AI market is experiencing rapid growth, leading to significant transformations in the semiconductor industry. According to the latest AI Chips Special Report released by DIGITIMES Research, the training and inference of generative AI models heavily rely on substantial computing resources, making AI chips providing computational power a focal point in the industry.
The report highlights the explosive growth period for both hardware and software opportunities in AI applications, driven by high-performance AI accelerators in cloud data centers and edge AI device chips driven by privacy concerns. Advanced manufacturing technologies and capacities of wafer foundries are identified as key factors in meeting the accelerated computing needs of AI chips.
Cloud-based AI is leading the development of generative AI, with wafer foundries focusing on advanced processes, advanced packaging, HBM capacity expansion, and the increasing demand for AI servers in cloud data centers. Analyst Stella Weng forecasts a high compound annual growth rate (CAGR) for high-end GPUs and cloud ASIC accelerators in the coming years, with a shift towards replacement-focused demand in the future.
To meet the production demand for cloud and edge AI chips, wafer foundries are accelerating the expansion of advanced processes and packaging capacities. Analyst Eric Chen estimates significant growth in advanced process expansion and TSMC’s CoWoS packaging technology capacity expansion in the wafer foundry industry.
Generative AI applications are rapidly expanding from cloud-based services to edge deployments, with smartphones and PCs leading the adoption. Analysts predict a significant increase in shipments of generative AI smartphone APs and AI PC processors in the coming years, signaling a new wave of growth in the AI PC market.
The deployment of AI applications is expected to bring substantial business opportunities, transforming current technology and capacity demands and intensifying competition in the chip market. The semiconductor ecosystem is set to undergo unprecedented changes as the demand for AI chips continues to rise.
For more insights into the impact of generative AI on cloud and edge computing, read the latest AI Chip Special Report by DIGITIMES Research. The report provides detailed insights into market share, development blueprints for AI chips, and the evolution of technologies across the supply chain.
About DIGITIMES Asia
DIGITIMES Asia is a leading professional media platform specializing in global technology industry supply chains, regional markets, technology applications, and market trends. DIGITIMES Research offers comprehensive research data, production and sales information, and expert analysis across industry sectors and end markets, providing consulting services that bring macro trends and forward-looking value to clients.
SOURCE DIGITIMES ASIA
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