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CEOWORLD magazine - Latest - CEO Opinions - AI Chip Demand Set to Propel Semiconductor Industry Growth, Says CEO of TSMC

CEO OpinionsTech and Innovation

AI Chip Demand Set to Propel Semiconductor Industry Growth, Says CEO of TSMC

The demand for AI chips is expected to drive growth in the semiconductor sector in the coming years, according to the CEO of a major supplier to Taiwan Semiconductor Manufacturing Company (TSMC). The CEO dismissed concerns that investors may have overestimated the speed and scale of spending on artificial intelligence (AI).

Hsu Ming-Chi, CEO of Scientech, pointed out that while the global chip market has expanded at an average annual rate of around 8% over the past two decades, the segment for AI semiconductors is poised to grow at a significantly faster pace. He indicated that the rapid expansion of the AI industry was only just beginning, revealing that sales of equipment to one of their largest clients had likely increased two to three times within a year.

Hsu’s remarks came after Nvidia’s recent earnings report fell short of the most optimistic forecasts from investors. Meanwhile, analysts issued new cautions, noting that the transformative potential of AI to reshape global economies had yet to be fully realized. Following this, Nvidia’s shares plummeted by 9.5% on September 3, resulting in a loss of $278.9 billion — the largest single-day market value loss for a U.S. stock.

Despite the market turbulence, Hsu anticipated that Scientech would experience sequential growth in quarterly sales during the second half of 2024. He expressed confidence in the upcoming launch of numerous AI applications that would support further expansion.

Scientech, based in Taipei, produces specialized equipment for TSMC’s unique Chip-on-Wafer-on-Substrate packaging technology, which is used to manufacture AI chips for companies like Nvidia. In May, TSMC’s Senior Vice President, Kevin Zhang, noted that the company was responsible for producing 99% of the world’s AI accelerators. Reflecting the optimism in the AI sector, Scientech’s share price has surged nearly 80% since the start of 2024.

 

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CEOWORLD magazine - Latest - CEO Opinions - AI Chip Demand Set to Propel Semiconductor Industry Growth, Says CEO of TSMC
Anna Siampani
Anna Siampani, Lifestyle Editorial Director at the CEOWORLD magazine, working with reporters covering the luxury travel, high-end fashion, hospitality, and lifestyle industries. As lifestyle editorial director, Anna oversees CEOWORLD magazine's daily digital editorial operations, editing and writing features, essays, news, and other content, in addition to editing the magazine's cover stories, astrology pages, and more. You can reach Anna by mail at anna@ceoworld.biz