[News] PSMC to Launch Affordable AI Chips Next Year

2023-09-08 Semiconductors editor

According to a report by Taiwan’s Commercial Times, the semiconductor market is expected to slow down this year. PSMC Chairman Frank Huang stated that it is estimated that the current wave of semiconductor inventory clearance will not be completed until the end of the first quarter of next year, and the overall market conditions for next year are still not expected to rebound strongly.

When asked about the mature wafer fabs in mainland China aggressively capturing market share this year with low prices, Frank Huang emphasized that this was anticipated. He further stated that PSMC is planning to launch affordable AI chips primarily targeting the consumer market next year, completely differentiating them from Nvidia’s high-priced products. Given the large scale of the consumer market, he expressed optimism regarding future shipment growth.

Huang emphasized that PSMC’s planned AI chips with AI functionality are like miniature computers. Currently, international chip manufacturers offer AI chips with unit prices as high as $200,000, making them impossible for widespread adoption in the consumer market. Therefore, the AI chips PSMC plans to launch next year will have lower prices and will be specifically tailored for the massive consumer market. He gave examples, including affordable AI features being integrated into toys and household appliances. Toys, for instance, will be able to recognize their owners and engage in voice interactions.

Huang mentioned that, because they are targeting affordability and mass appeal, these AI chips will be produced using a 28-nanometer process and are expected to contribute to revenue through formal shipments next year. With a focus on the consumer market, Huang is optimistic about the future shipments and business contributions of these AI chips.