The Semiconductor industry in the AI era

Innovating for tomorrow’s demands

The Capgemini Research Institute's this report highlights the transformative impact of Artificial Intelligence and generative AI (GenAI) on the semiconductor sector. Key findings include:

Accelerated Demand: Downstream industries anticipate a 29% increase in semiconductor demand by 2026, nearly double the 15% growth expected by semiconductor manufacturers.

AI-Driven Requirements: The rise of AI applications necessitates specialized chips, such as neural processing units (NPUs) and high-performance graphics processing units (GPUs), to manage complex computations.

Supply Chain Concerns: Over half of downstream organizations express apprehension about the industry's ability to meet escalating demands, citing supply chain reliability and geopolitical tensions as primary concerns.

Innovation Imperative: To address these challenges, semiconductor firms are investing in research and development, focusing on manufacturing innovations, materials research, and advanced packaging techniques.

The report underscores the critical need for the semiconductorindustry to adapt and innovate in response to the transformative impact of AI technologies.

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