TSMC supplier says AI chip market growth to accelerate, dismisses Nvidia wipeout
The CEO of Scientech, a semiconductor packaging equipment maker, says the AI boom ‘has just begun’.
Demand for AI chips should spur growth for the semiconductor industry over the next few years, the CEO of a major supplier to Taiwan Semiconductor Manufacturing Company said, dismissing concerns that investors had misjudged the pace and extent of spending on artificial intelligence.
While the global chip market has grown about 8 per cent annually over the past 20 years, AI semiconductors should grow at a much higher rate going forward, Scientech chief executive officer Hsu Ming-chi told Bloomberg Television.
“This booming of the AI industry has just begun,” Hsu said. “For the most prominent company, the equipment we sold to them probably increased two to three times in a year.”
Still, Hsu expects his company will see quarterly sales grow sequentially during the second half of 2024. He expressed his confidence in the launch of many AI applications in the future.
Taipei-based Scientech makes equipment used in TSMC’s exclusive packaging technology, called Chip-on-Wafer-on-Substrate. That’s in turn employed to make AI chips for the likes of Nvidia. In May, TSMC senior vice-president Kevin Zhang said his company makes 99 per cent of the world’s AI accelerators. Scientech’s share price has gained close to 80 per cent since the beginning of 2024.
