Over $300 Million Will Be Invested by Global Chipmakers on AI-Designed Chips

Global Chipmakers
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According to a report published on Friday by Deloitte Korea, the leading semiconductor companies in the world are likely to invest more than $300 million this year in the research and development of artificial intelligence (AI) to assist in the design of semiconductors at a faster rate. This comes as a global chip shortage continues to put a strain on demand.

This is the amount that, according to the research, major chipmakers including Samsung Electronics, Intel, and Qualcomm are anticipated to spend on artificial intelligence design tools for processors. If we assume that growth of 20 percent per year will continue for the following three years, we may reasonably anticipate that the amount will be more than $500 million in 2026.

According to the consulting company, while it is not a great amount of money in comparison to the estimated value of the worldwide semiconductor market for this year, which is expected to be $660 billion, it is important for the outsized return on investment.

According to a research conducted by Deloitte, AI design tools make it possible for chipmakers to reduce the amount of time and money spent on the production of semiconductors, mitigate the effects of talent shortages, and bring older chip designs into the 21st century. According to the report, the sophisticated technologies may also boost supply chain security and help limit the risk of a future chip shortage.

According to Choi Ho-kye, leader of technology, media, and telecommunications at Deloitte Korea, “the advanced AI tools are anticipated to alleviate a range of issues that have been plaguing the chip industry.” These issues include the intensifying foundry competition for micro-processing, the increasing cost of chip manufacturing, and the persistent chip shortage.

According to the paper, the artificial intelligence design tool created by the Massachusetts Institute of Technology (MIT) enhanced the energy efficiency of the circuits to be more than twice as efficient as those built by humans. Using AI technology, the Taiwanese company MediaTek was able to reduce the size of a critical component by 5 percent while simultaneously reducing the amount of power it used by 6 percent.

The size of the worldwide electronic design automation (EDA) market was projected to be at $10 billion last year and is expanding at roughly 8 percent yearly. This is due to the fact that electronic design automation (EDA) suppliers have been making tools for chip design for decades. It was said that the growth rate of sophisticated AI tools for chip design is predicted to be more than twice as fast as the growth rate of EDA tools and more than three times as fast as the growth rate of chip sales over the next five years.

 

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