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☆ TSMC's stalled Arizona chip factory is 'well on track' to start production next year — and it'll be charging more for US-made chips
▼ + stars: | 2024-04-19 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

Last year, Taiwan Semiconductor Manufacturing Company reported its first profit decline in four years. The company said engineering wafer production began at the factory in April, an important step toward the eventual chip production. Last July, TSMC announced that chip production for the first factory would be postponed from 2024 to 2025. Barring further setbacks, TSMC's update could mean the first factory will begin production of chips in 2025. This funding could be particularly important for TSMC, given the cost of factory construction and chip manufacturing can differ between the US and Taiwan.

Persons: —, TSMC, Biden, Joe Biden, — TSMC, Dylan Patel, SemiAnalysis, that's, Morris Chang, C.C, Wei Organizations: Service, Taiwan Semiconductor Manufacturing Company, Business, Biden, Financial Times Locations: Taiwan, Arizona, Phoenix, Japan, Germany

☆ It's not just Nvidia: The AI boom could create semiconductor jobs across the US and reduce reliance on risky Taiwan
▼ + stars: | 2024-02-29 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +8 min

The demand for Nvidia's AI chips could bolster job growth across the semiconductor industry. It could also help bring more semiconductor chip manufacturing stateside and reduce the US's reliance on Taiwan — which remains vulnerable to Chinese invasion that would wreak havoc on the global economy. AdvertisementEven without the AI boom, the semiconductor industry was already poised for big job gains in the near future. Of the 115,000 US new semiconductor jobs the Semiconductor Industry Association is projecting by 2030, it said roughly 67,000 of these positions risk going unfilled given current college degree completion rates. In an effort to prevent a worker shortage, community colleges and universities across the country have partnered with semiconductor companies.

Persons: —, Pat Gelsinger, It's, who've, TSMC, Syed Alam, Ed Kaste, GlobalFoundries, Mark Muro, Muro, Jensen Huang, hasn't, Dylan Patel, SemiAnalysis, Patel, Accenture's Alam, Alam Organizations: Nvidia, TSMC, Service, Deloitte, Semiconductor Industry Association, Accenture, Meta, Intel, AMD, Brookings Institution, Samsung, Google, IBM, Lam Research, Materials, KLA Corporation Locations: Taiwan, Arizona

☆ Nvidia chases $30 billion custom chip market with new unit: Reuters
▼ + stars: | 2024-02-09 | by ( ) www.cnbc.com time to read: +4 min

The dominant global designer and supplier of AI chips aims to capture a portion of an exploding market for custom AI chips and to protect itself from the growing number of companies interested in finding alternatives to its products. Nvidia officials have met with representatives from Amazon.com , Meta, Microsoft, Google and OpenAI to discuss making custom chips for them, according to two sources familiar with the meetings. $30 billion marketAccording to estimates from research firm 650 Group's Alan Weckel, the data center custom chip market will grow to as much as $10 billion this year, and double that in 2025. The broader custom chip market was worth roughly $30 billion in 2023, which amounts to roughly 5% of annual global chip sales, according to Needham analyst Charles Shi. "With Broadcom's custom silicon business touching $10 billion, and Marvell's around $2 billion, this is a real threat," said Dylan Patel, founder of the silicon research group SemiAnalysis.

Persons: OpenAI, Greg Reichow, Meta, Dina McKinney, Alan Weckel, Charles Shi, Dylan Patel Organizations: Nvidia, Microsoft, Broadcom, Marvell Technology, Eclipse Ventures, Amazon.com, Meta, Google, Reuters, Devices, Marvell, Taiwan Semiconductor Manufacturing Locations: Krakow, Poland, Santa Clara , California

☆ Nvidia wants to work with the world's most powerful tech companies to make customized AI chips
▼ + stars: | 2024-02-09 | by ( Aaron Mok | ) www.businessinsider.com time to read: +4 min

Nvidia is in talks with tech giants like OpenAI and Google to build custom AI chips. It's held talks with leaders from Meta, Microsoft, Google, and OpenAI to build custom chips for data centers, two sources told Reuters. AdvertisementAny move by Nvidia into the custom chip market bodes ill for other manufacturers. Nvidia isn't just trying to work with major tech companies. The company is also turning to its own AI to produce its own AI chips faster.

Persons: —, It's, Nvidia's, OpenAI, Greg Reichow, Dylan Patel, Nvidia isn't, Sam Altman, Jensen Huang, Aaron Mok Organizations: Nvidia, Google, Broadcom, Reuters, Service, Meta, Microsoft, Business, Marvell Technology, Eclipse Ventures, OpenAI, United Arab Emirates

The new restrictions will also affect rival chips produced by Advanced Micro Devices (AMD.O) and Intel (INTC.O), according to analysts. In its filing, Nvidia said two of its modified advanced AI chips - the A800 and H800 - both of which it created for the Chinese market to comply with previous export rules, would be blocked for sale under the new rules. Nvidia declined to comment beyond the filing. Chips being built by Intel and Advanced Micro Devices that aim to compete with Nvidia will also be impacted. Intel declined to comment on the Gaudi 2 chip and said it was assessing the new rules.

Persons: Dado Ruvic, Dylan Patel, Intel's Gaudi, Bernstein, Stacy Rasgon, Patel, Biden, chipmaker, Yuvraj Malik, Max A, Sriraj Kalluvila, Leslie Adler Organizations: NVIDIA, REUTERS, Nvidia, Beijing, Micro Devices, Intel, Gaudi, AMD, Thomson Locations: China, Bengaluru, Max, San Francisco

☆ AI industry could be in for a 'cold shower' next year: analyst
▼ + stars: | 2023-10-11 | by ( Kai Xiang Teo | ) www.businessinsider.com time to read: +2 min

Analyst firm CCS Insight is predicting a "cold shower" for generative AI in 2024. The firm's chief analyst told CNBC he believes the technology is overhyped and faces immense costs to deploy. AdvertisementAdvertisementAn analyst firm is predicting a "cold shower" for generative AI in 2024. "Just the cost of deploying and sustaining generative AI is immense," said Wood. AdvertisementAdvertisementFor context, AI relies on chips to run, and the firm's prediction comes amid concerns about a global chip shortage.

Persons: —, Ben Wood, Wood, Elon Musk, Dylan Patel Organizations: Insight, CNBC, Service, CCS, CCS Insight, Google, Elon, Nvidia, Reuters Locations: London

☆ AI bros are at war over declarations that Google's upcoming Gemini AI model smashes OpenAI's GPT-4
▼ + stars: | 2023-08-29 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +4 min

The researchers behind the SemiAnalysis blog say Google's upcoming AI Gemini smashes GPT-4. That might explain OpenAI boss Sam Altman's defensive response to a post published over the weekend titled : "Google Gemini Eats The World – Gemini Smashes GPT-4 By 5X, The GPU-Poors." Gemini is a next-gen, multimodal AI model being worked on by researchers at Google's AI arm DeepMind, and is expected to be released later in 2023. In response, SemiAnalysis' Patel posted on X that he got data on Google's GPU stores from a supplier of Google — rather than Google itself. But to say Gemini Smashes GPT-4 by 5x makes it sound like it is 5x better than GPT-4, it's not, its 5x compute.

Persons: Sam Altman, Sam Altman's, Dylan Patel, Daniel Nishball, Google's, Patel, OpenAI's, Altman, SemiAnalysis, Sundar Pichai, Sundar, G86ZRjnNmS, dtS0Bw3I92 — Dylan Patel, dethrones OAI, it's, ChatGPT Organizations: Google, Hacker

☆ The tech world is being dividing into 'GPU rich' and 'GPU poor.' Here are the companies in each group.
▼ + stars: | 2023-08-28 | by ( Alistair Barr | ) www.businessinsider.com time to read: +4 min

SemiAnalysis, a respected research firm, just divided the tech world into 2 groups. You now actually have to have the tech components, other infrastructure, and a smart plan to deploy this incredibly expensive gear. The GPU-PoorPatel and Nishball divide the tech industry into 2 main groups: The "GPU-poor" and the "GPU-rich." Then there are well-known AI firms, such as Hugging Face, Databricks, and Together, that are also GPU-poor. The internet giant is "the Most Compute Rich Firm In The World," with "unbeatably efficient architecture," Patel and Nishall wrote.

Persons: you've, Dylan Patel, Daniel Nishball, Patel, Jules Verne, Rich Patel, Nishball, Elon Musk's, Nishall Organizations: Morning, Nvidia, Google, Meta Locations: Saudi Arabia, UAE

The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017. Nvidia's stock price, though, has more than tripled this year and was set to hit an all-time high after Wednesday's results. The company has a near-monopoly on the computing systems used to power services like ChatGPT, OpenAI's blockbuster generative AI chatbot. Huang declined to comment on whether the AI boom will last past next year. The company said the biggest sales driver this quarter was its HGX system, which is an entire computer built around Nvidia's chip.

Persons: Tyrone Siu, Huang, Jensen Huang, quashing, Kinngai Chan, Chan, Dylan Patel, SemiAnalysis, Patel, We're, Stephen Nellis, Max Cherney, Chavi Mehta, Sonali Paul Organizations: Nvidia Corporation, REUTERS, Nvidia, Reuters, Microsoft, Summit, Thomson Locations: Taipei, Taiwan, OpenAI, San Francisco

Arm is hoping for a valuation of up to $70 billion in the IPO, which will launch on the Nasdaq next month. Arm and its owner SoftBank Group have set aside 10% of the shares to be sold in the IPO for its clients, the sources said. Its close relationship with Arm has helped it design chips that curbed its reliance on Intel as a supplier. Many technology companies that seek to make their own chips using Arm’s designs turn to TSMC for its low-cost manufacturing. None of these companies’ investments in Arm’s IPO are certain.

Persons: Dado Ruvic, ”, Jack Gold, SoftBank, Apple spokespeople, Jay Lee, Masayoshi Son, Son, TSMC, Dylan Patel Organizations: FRANCISCO, Reuters, Arm Holdings, REUTERS, Apple, Intel, Nvidia, Microsoft, Samsung Electronics, Nasdaq, Gold Associates, SoftBank, Devices Inc, APPLE, SAMSUNG, Samsung, MICROSOFT, Devices, Vision Fund Locations: Switzerland, Japan

Arm is hoping for a valuation of up to $70 billion in the IPO, which will launch on the Nasdaq next month. Arm and its owner SoftBank Group (9984.T) have set aside 10% of the shares to be sold in the IPO for its clients, the sources said. Its close relationship with Arm has helped it design chips that curbed its reliance on Intel as a supplier. Many technology companies that seek to make their own chips using Arm's designs turn to TSMC for its low-cost manufacturing. None of these companies' investments in Arm's IPO are certain.

Persons: Dado Ruvic, Jack Gold, SoftBank, Apple spokespeople, Jay Lee, Masayoshi Son, Son, TSMC, Dylan Patel, Milana Vinn, Stephen Nellis, Max Cherney, Greg Roumeliotis, Matthew Lewis Organizations: REUTERS, FRANCISCO, Arm Holdings, Apple, Intel, Nvidia, Microsoft, Samsung Electronics, Reuters, Nasdaq, Gold Associates, SoftBank, Devices Inc, APPLE, SAMSUNG, Samsung, MICROSOFT, Devices, Vision Fund, Thomson Locations: Switzerland, Japan, New York, San Francisco

☆ South Korea wants to be a top A.I. hub — its chip dominance could be an advantage
▼ + stars: | 2023-07-06 | by ( Sheila Chiang | ) www.cnbc.com time to read: +5 min

Jung Yeon-je | Afp | Getty ImagesSouth Korea's dominance in the memory chip market and a robust artificial intelligence ecosystem gives it an advantage in the global AI chip race, said industry observers. South Korea dominating in the memory market is definitely an advantage," said James Lim, senior research analyst at Dalton Investments. "South Korea seeks to emerge as a prominent player in rapidly growing and promising areas such as AI semiconductors," said Lee. "South Korea has a robust local AI ecosystem, capable of competing with global tech giants," said Sung Nako, executive for large scale AI development at South Korean internet giant Naver. ChatGPT maker OpenAI's CEO Sam Altman had urged South Korea to lead AI chip production during his meeting with South Korean President Yoon Suk-yeol in June.

Persons: Jung Yeon, James Lim, Lee, Dylan Patel, SemiAnalysis, ., TrendForce, Sung Nako, Sam Altman, Yoon Suk, Altman, Dalton's Lim, Geoffrey Cain Organizations: Getty, Dalton Investments, CNBC, Samsung, SK Hynix South, Samsung Electronics, SK Hynix, Science, Micron, South, South Korean, Nvidia, Intel Locations: Seoul, Korea, South Korea, China, U.S

☆ 3 major companies trying to move supply chains out of China, and how they're faring in their attempts to move away from the factory of the world
▼ + stars: | 2023-06-27 | by ( Huileng Tan | ) www.businessinsider.com time to read: +6 min

Ted Cannis, a senior executive at Ford, told the Financial Times in December that there is a "large-scale rethinking of logistics operations" across the auto supply chain. "The supply chain is going to be the focus of this decade," Cannis said. Among the companies Apple is relying on to make the Vision Pro is Taiwan's Foxconn — which is the main supplier shifting its supply chain away from China. The move was made after China's COVID-19 lockdowns rocked supply chain and production timelines, but prices are the real driving reason behind the move. "Right now, robustness of our supply chain also needs to be considered to ensure the stable procurement of parts."

Persons: —, Donald Trump, lockdowns, COVID, Ashutosh Sharma, Forrester, Ted Cannis, Cannis, China's, Wellsenn, Cowell, Liu Young, TSMC, Morris Chang, Chips, Dylan Patel, SemiAnalysis, Tim Cook, Fang DongxuFeature, Mazda, China's COVID, Masahiro Moro, ", Moro Organizations: Mazda, Service, Privacy, East, Ford, Financial Times, Apple, Vision, Apple's, Cowell e Holdings, Future Publishing, Reuters Locations: China, India, Zhengzhou, Henan, Vietnam, Mexico, Taiwan, Arizona, Nanjing, Fang DongxuFeature China, Japan Japanese, Japan

☆ ChatGPT cost a bomb to make with OpenAI's losses growing to $540 million last year, report says
▼ + stars: | 2023-05-05 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +3 min

OpenAI's losses climbed to $540 million in 2022 as it developed ChatGPT, a new report claims. The Information said that the startup's costs soared in the months before it launched the chatbot. AI tools like ChatGPT are expensive given the significant computing power needed to run them. OpenAI's development of the technology came at a steep price, with its losses roughly doubling to around $540 million last year, a new report claims. OpenAI's revenue is projected to rise significantly this year, with expectations that revenue will hit $200 million this year before climbing to $1 billion in 2024, according to Reuters.

☆ ChatGPT could cost over $700,000 per day to operate. Microsoft is reportedly trying to make it cheaper.
▼ + stars: | 2023-04-20 | by ( Aaron Mok | ) www.businessinsider.com time to read: +4 min

ChatGPT could cost OpenAI up to $700,000 a day to run due to "expensive servers," an analyst told The Information. Microsoft is secretly building an AI chip to reduce the cost, per The Information. "Most of this cost is based around the expensive servers they require," Patel told the tech publication. Microsoft is reportedly working on a secret chipIn an effort to reduce the cost of running generative AI models, Microsoft is developing an AI chip it calls Athena, The Information first reported. Nearly four years later, more than 300 Microsoft employees are now reportedly working on the chip, according to the report.

☆ In the Whirl of ChatGPT, Startups See an Opening for Their AI Chips
▼ + stars: | 2023-02-27 | by ( Isabelle Bousquette | ) www.wsj.com time to read: +5 min

Generative AI and large language models like OpenAI’s ChatGPT require massive amounts of computing power to run, and typically rely on chips like Nvidia’s graphics-processing units, or GPUs, that are specialized for these types of calculations. Graphcore sells primarily to AI startups looking to build and train models at lower cost, he said, and the company is benefiting from the proliferation of those startups. Shane Rau, who leads International Data Corp.’s semiconductor research, said chip startups are increasingly pivoting to focus their products on supporting large language models. Still, he added, “you’re going to see a combination of real adaptation and marketing.”“There will be the pressure to say: ‘Hey, we’re already relevant, our AI chip technology’s already relevant to generative AI’,” said Mr. Rau. Some chip makers say they expect yet another surge in demand once businesses more widely adopt generative AI.

☆ The renewed 'Made in America' wave is going to make stuff like clothing and electronics more expensive
▼ + stars: | 2022-12-22 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +6 min

It's in response to the supply chains disruptions companies have faced in recent years. The headaches US corporations have faced are leading more of them to bring their supply chains closer to home and more under their control. Just under half (46%) said they were adjusting supply chains, and around a third (32%) said they were onshoring their workforce. But if more companies shift their supply chains closer to home, this could slowly begin to change. If reshoring companies have to raise wages to attract workers, they may decide to raise prices even further to protect their margins.

☆ The world's biggest chipmaker is making a multi-billion dollar investment in the US even though it'll cost way more to make chips there. Here's why it decided to do it anyway.
▼ + stars: | 2022-12-17 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +4 min

Taiwan-based TSMC, the world's biggest chipmaker, announced a $40 billion investment in Arizona last week. That's despite TSMC's founder previously calling US chip production an "expensive exercise in futility." In the event China — which claims the island as its own — invades the island and chip production screeches to a halt, there could be trillions of dollars in economic losses. First, the cost of chip production in the US might not ultimately be "50% more expensive." The factories will be partially subsidized by the US government through the CHIPS and Science Act, a package passed in August that provided $52 billion to boost US semiconductor chip production.

☆ Biden is touting a multi-billion-dollar chip factory in Arizona as a way to save the global economy from China threats — but an invasion of Taiwan would still wreak chaos
▼ + stars: | 2022-12-15 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

Experts disagree on how much this will protect the US economy in the event of a Chinese invasion of Taiwan. "These investments are helping us build and strengthen the supply chain here in America," Biden said, adding that "American manufacturing is back." "That's the definition of supply chain resilience. "Ultimately, creating a more resilient supply chain for semiconductors involves more than fab plants." To truly achieve supply chain resilience, Rasser says, the US must only boost production further, but needs similar investments in all areas of the chips supply chain, from raw materials to packaging.

☆ The fate of the world economy may depend on what happens to a company most Americans have never heard of
▼ + stars: | 2022-10-22 | by ( Avery Hartmans | Jacob Zinkula | ) www.businessinsider.com time to read: +13 min

The fate of the global economy may rest on the shoulders of one company: TSMC. That's because there could be trillions of dollars' worth of economic activity tied to that one company: Taiwan Semiconductor Manufacturing Company, the world's biggest chipmaker. Ann Wang/ReutersThe semiconductor industry has its roots in the US, as much of the research and development is done on US soil. According to a 2021 report from the Semiconductor Industry Association, in 1990 the US produced 37% of the world's chip supply. These days, the US is responsible for only 12% of global chip production.

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