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    Home ยป The Challenges of Meeting the Growing Demand for AI Chips in the Semiconductor Industry
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    The Challenges of Meeting the Growing Demand for AI Chips in the Semiconductor Industry

    December 8, 20232 Mins Read
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    The CEO of Taiwan Semiconductor Manufacturing Co. (TSMC) acknowledges that the increasing demand for artificial intelligence (AI) chips is posing new obstacles for the semiconductor industry. Dr. C.C. Wei emphasized the need to address both capacity and cost issues during the 2023 Supply Chain Management Forum.

    To meet the surging demand for AI chips, the industry must focus on developing technology that not only delivers top-notch performance but also efficiently controls power consumption. Dr. Wei highlighted the significance of reducing power consumption, particularly as AI power demand is projected to potentially triple in just two years.

    TSMC’s American depositary shares experienced a modest rise of 0.4% to $99.67 in early trading on Friday.

    In addition to discussing the challenges ahead, Dr. Wei recognized the profound impact AI can have on various sectors. He highlighted how AI technology can enhance the capabilities of medical professionals, improve automobile safety, and contribute to resource conservation.

    TSMC currently holds a dominant position in the high-end chip market. The company serves as the primary supplier of AI chips for Nvidia, a leader in AI semiconductor applications. Moreover, TSMC manufactures core processors for Apple iPhones, Qualcomm mobile chipsets, and Advanced Micro Devices processors.

    TrendForce data shows that TSMC commands approximately 56% of the market share in third-party chip manufacturing, with Samsung following behind at 12%.

    Despite the forthcoming challenges in AI chip production, Dr. Wei remains optimistic about achieving success with the collaboration of his company and supplier partners. As uncertainties surrounding inflation persist in 2024, considerable price increases resulting from external factors are expected. However, Dr. Wei believes that through collective efforts, their goals can be attained.

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    AI chips Artificial Intelligence semiconductor industry supply chain management Taiwan Semiconductor Manufacturing Co. technology TSMC
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