global AI needs reshape semiconductor industry decisions
Global, Friday, 24 January 2025.
The ongoing surge in demand for artificial intelligence is significantly impacting semiconductor manufacturing worldwide. Industry giants like NVIDIA, ASML, and TSMC are adapting their strategies to meet these evolving needs. New technological innovations are being leveraged, and talent shortages are being addressed to keep pace. AI-driven demand, coupled with the growth in electric vehicle and data center markets, is projected to drive U.S. semiconductor manufacturing growth in 2025. The CHIPS and Science Act, allocating $39 billion for semiconductor projects, strengthens supply chains in key states. AI chip demand is set to see double-digit growth through 2030, but challenges like potential chip shortages loom. The need for energy-efficient chips becomes crucial for future development in various sectors. Industry experts emphasize the necessity for resilient supply chains amid global shifts, ensuring that the semiconductor industry can support growing technological advancements.
Market growth and investment surge
Major industry players are capitalizing on unprecedented AI-driven demand. Global semiconductor manufacturing is projected to see double-digit growth through 2030 [1]. Cloud capital expenditure is expected to increase by 30 percent in 2025 [3]. The U.S. Commerce Department has distributed $30.6 billion in CHIPS funding to 19 companies, with industry leaders TSMC, Intel, and Samsung each receiving over $6 billion [1].
Supply chain adaptation
Industry experts warn of potential supply constraints in 2025. Anne Hoecker from Bain & Co. notes that ‘certain areas within the supply chain are still tightly constrained, driven by AI demand’ [1]. Companies are implementing strategic measures to ensure supply chain resilience [1]. The semiconductor industry is seeing particularly strong demand in AI-based chips, which command premium market values according to SEMI Americas president Joe Stockunas [1].
Emerging market opportunities
Morgan Stanley predicts robust growth in non-AI markets for 2025 [3]. Global smartphone shipments are forecast to grow by 4.5 percent, while 5G smartphone deliveries are expected to reach 810 million units [3]. The electric vehicle sector is projected to drive increased demand for high-voltage semiconductor systems [1], with automotive semiconductor demand expected to triple by 2030 [1].
Talent and infrastructure development
The industry faces a critical talent shortage, particularly in engineering and technical roles [1]. Plans for 90 new semiconductor projects in the U.S. are expected to create over 58,000 jobs [1]. Recent announcements reveal significant investments in AI infrastructure, with three major companies planning to invest $500 billion in U.S. AI infrastructure development [2].