ai chip race heats up: meta and amazon invest big amid policy worries
New York, Thursday, 31 July 2025.
Meta and Amazon are significantly increasing their investments in AI chip development. This move aims to meet the growing demands for high-bandwidth memory and advanced connectivity solutions. These investments occur amidst uncertainty in semiconductor export policies and labor market dynamics. Meta’s new ‘Artemis’ chip signifies a push for silicon independence. Traditional players like Marvell and Micron are also poised to benefit from the increased demand for HBM and connectivity technologies.
hyperscalers’ ai chip strategies
Amazon has confirmed the internal deployment of Trainium2 and Inferentia3. These chips are designed for model training and inference at AWS scale [1]. Meta’s introduction of ‘Artemis’, an in-house AI inference chip, indicates a significant move towards silicon independence for hyperscalers [1]. These strategies reflect a broader trend where major tech companies are seeking custom silicon solutions to optimize AI workloads and reduce reliance on traditional chip vendors [1].
market trends and expert opinions
Analysts at Guosen Securities anticipate a full-scale rebound in the semiconductor industry. They cite a triple convergence of macroeconomic policies, industry inventory cycles, and AI innovation cycles as drivers for valuation expansion [2][3][4]. Despite recent market corrections, such as the decline of the CSI Cloud Computing & Big Data Theme Index by 1.2%, the CSI Chip Industry Index by 1.0%, and the CSI Semiconductor Materials & Equipment Theme Index by 0.7%, the overall outlook remains positive [2][3][4].
etf activity and investment focus
Semiconductor and computing power sectors are showing strong performance, with related ETFs facilitating investment in AI infrastructure [5]. The CSI Chip Industry Index increased by 1.0%, and the CSI Cloud Computing & Big Data Theme Index rose by 0.6% [5]. Cloud Computing ETF (516510) saw three consecutive days of capital inflow, totaling 330 million yuan, according to Wind data [5]. Citic Construction Investment Securities suggests focusing on companies with high growth and low valuations, as recent financial reports indicate strong performance in the AI computing power industry [5].
broader industry developments
Recent developments highlight the dynamic nature of the semiconductor industry. Jinzi Ham, a company traditionally known for food products, has established Fujian Jinzi Semiconductor Co., Ltd. with a registered capital of 100 million yuan [7]. This new venture will focus on integrated circuit design, manufacturing, and sales, as well as cloud computing equipment technology services [7]. This diversification indicates the broad appeal and potential of the semiconductor market, even for companies outside the traditional tech sector [7].