06 Feb 2024 -
 Industrial

Explosive growth anticipated in Asian IC design market

semi fabrications

Is the Asian Integrated Circuit (IC) design market poised for an unprecedented surge? Recent reports suggest a resounding “yes.” Forecasts indicate a substantial uptick, with the market size expected to skyrocket from US$641 million in 2023 to a staggering US$1.349 billion this year. What factors are driving this remarkable expansion?

The demand for cloud-based artificial intelligence (AI) applications appears to be a primary catalyst. In 2023, major U.S. ultra-large-scale computing entities, spearheaded by industry giants Google and Amazon, consumed around 100,000 wafers. Notably, these wafers predominantly featured Taiwan Semiconductor Manufacturing Company’s (TSMC) 7-nanometer and 5-nanometer products, constituting 4% of TSMC’s corresponding product shipments.

The report sheds light on the persistent shortage of high-end Graphics Processing Unit (GPU) supply, highlighting a potential doubling of wafer demand to 200,000 annually by 2024. This surge is anticipated to account for a significant 10% share of TSMC’s annual shipments of 7nm and 5nm products. Such insights hint at the industry’s rapid evolution and the pivotal role played by key players like TSMC in meeting the escalating demands of the electronics market.

This transformative trajectory in the Asian IC design sector underscores the critical interplay between technological advancements, burgeoning AI applications, and the supply chain challenges faced by high-performance GPU manufacturers. As the market dynamics evolve, industry players must remain agile and adaptive to harness the opportunities presented by this explosive growth. The integration of cloud AI and the escalating demand for high-performance wafers signal a new era in the electronics landscape, with the Asian IC design market positioned at the forefront of this revolutionary wave.

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