Artificial Intelligence (AI) Chips - Thematic Research

Artificial intelligence (AI) has been a dream of humanity for centuries. Yet it has not been until recent progress in machine learning on the back of improved algorithms (e.g., Google's AlphaGo, OpenAI's GPT-3, Tesla's AutoPilot) and increasing computing power that it has been possible for AI to solve real-life problems. However, as these AI models dramatically grow in complexity, chips specifically optimized for AI become imperative. GlobalData forecasts that AI chip revenue will reach $130 billion by 2030. This relatively new category will go from its current 10% to 40% of the global semiconductor market. The country that emerges on top in AI chips, and thus AI, in the coming decade, will lead the Fourth Industrial Revolution. Furthermore, this has implications for leadership in other vital technologies such as autonomous vehicles and smart cities.

Key Highlights

• Building AI systems requires training and inference workloads with complex and differentiated requirements. To deploy AI capabilities at the consumer's fingertips, it will be necessary to deploy cloud resources at the edge and support high throughput and ultra-low latencies, both of which call for a widespread full (standalone) 5G rollout.
• The ongoing US-China trade dispute has negative implications for AI chip technology's global progress, particularly for China. China will play a leading role in AI due to its strength in AI software and IoT technology and its progress in low-end chip manufacturing. However, unless it can secure access to advanced chip manufacturing technology, it will likely struggle in AI in leading cloud data centers and, most likely, autonomous vehicles.

Scope

• This report provides an overview of the AI chips theme.
• It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
• It contains an overview of the semiconductor industry, including its structure, key participants, interdependencies, and latest innovations, with a particular focus on AI chips.
• It includes global market forecasts for the semiconductor industry and AI chips and analysis of patents, company filings, hiring, and foreign direct investment trends.
• It contains details of M&A deals driven by the AI chips theme, and a timeline highlighting milestones in the development of AI chips.
• The detailed value chain consists of five segments: pre-competitive basic research, design, fabrication, assembly and testing, and end products.

Reasons to Buy

• This report analyzes the changes that are already underway in the global semiconductor industry, and identifies the companies that are likely to dominate this rapidly-evolving market.