Thematic Intelligence: AI Chips (2024)

AI chips are becoming the new industrial battleground Artificial intelligence (AI) has been a dream of humanity for centuries. Yet it has not been until recent progress in machine learning on the back of improved algorithms (e.g., Google’s AlphaGo, OpenAI’s GPT-4, Tesla’s AutoPilot) and increasing computing power that it has been possible for AI to solve real-life problems. However, as these AI models dramatically grow in complexity, chips specifically optimized for AI become imperative.

The analyst forecasts that AI chip revenue will reach $154 billion by 2030. This relatively new category will go from 15% to 35% of the global semiconductor market. The country that emerges on top in AI chips, and thus AI, in the coming decade, will lead the Fourth Industrial Revolution. Furthermore, this has implications for leadership in other vital technologies, such as autonomous vehicles and smart cities.

Environmental sustainability will drive demand The adoption of generative AI, with models growing exponentially in size, is accelerating the consumption of energy and natural resources such as water. AI chips optimized for power consumption and performance can offset this trend, so demand will accelerate over time.

Scope

• This report provides an overview of the AI chips theme.
• It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
• It contains an overview of the semiconductor industry, including its structure, key participants, interdependencies, and latest innovations, with a particular focus on AI chips.
• It includes global market forecasts for the semiconductor industry and AI chips and analysis of patents, company filings, hiring, and foreign direct investment trends.
• It contains details of M&A deals driven by the AI chips theme, and a timeline highlighting milestones in the development of AI chips.
• The detailed value chain consists of five segments: pre-competitive basic research, design, fabrication, assembly and testing, and end products.

Reasons to Buy

• This report analyzes the changes that are already underway in the global semiconductor industry, and identifies the companies that are likely to dominate this rapidly-evolving market.