Nov 4 : An AI chip increase is redirecting semiconductor provide towards knowledge centres and away from smartphones and PCs, constraining some finish markets, Siltronic CEO Michael Heckmeier mentioned on Wednesday.
Siltronic, which makes silicon wafers utilized in semiconductors, raised its annual gross sales forecast for the second time this 12 months on Wednesday, citing stronger demand for its wafers.
AI-linked demand has grow to be the chip trade’s fundamental progress engine, however Heckmeier advised Reuters in an interview that another semiconductor finish markets may develop sooner if extra chips have been out there.
“It is not that AI is offsetting sure weaknesses,” Heckmeier mentioned. “It is extra AI is producing a sure weak spot.”
Demand for AI-related chips stays so robust that semiconductor producers are allocating extra provide to these purposes, leaving much less capability for different finish markets.
“When our prospects have the selection to promote their chips to totally different segments, they are going to at all times ship them to those that pay greatest,” he mentioned. “The pockets of the AI gamers, significantly the hyperscalers, are the deepest.”
The development has made AI servers the trade’s fundamental progress engine, with the affect extending past larger server volumes.
Heckmeier mentioned AI server farms eat roughly three to 4 instances extra silicon space than conventional servers, boosting demand for superior wafers
Any moderation in AI demand wouldn’t essentially derail the trade’s progress, Heckmeier mentioned, as a result of capability may circulate again to smartphones, PCs and different markets the place underlying demand stays stable.
“We do not see it in any respect immediately,” Heckmeier mentioned of any slowdown in AI demand.
“However even when it got here, we really feel there’s a pure stability within the system that the general progress dynamics may go on.”