Trend Digital transformation and AI chip competition broaden long-term semiconductor demand

Summary

Beyond the current boom, KISDI expects several structural forces to keep semiconductor demand rising over the medium and long term. Digital transformation in autos, home appliances, defence, telecommunications and industry is increasing the number of chips used, which should raise overall demand. Growing challenges to Nvidia's dominance are intensifying competition in AI chips, while the growth of AI inference is expected to create demand for new chips such as xPUs, GDDRx and HBF. Major big tech firms are designing their own AI chips in cooperation with memory makers, and the spread of on-device AI is diversifying and segmenting demand for edge AI chips. Low-power, high-bandwidth memories for AI servers and edge devices, including HBMx, HBF, GDDRx, LPDDRx and CXL, are expected to keep growing in weight.