Optimistic Outlook on AI from Major Chipmakers

By Ben Blanchard and Heekyong Yang

TAIPEI (Reuters) – Senior executives from two of the world’s leading chipmakers, Taiwan’s TSMC and South Korea’s Samsung Electronics, provided optimistic views on artificial intelligence during a significant trade show on Wednesday, despite their stocks dropping amid volatile market conditions.

TSMC, the largest contract chipmaker globally, saw shares drop up to 5.5%, while Samsung Electronics, the major manufacturer of memory chips, closed down 3.5%.

These declines followed heavy selling of Nvidia, a key player in the AI sector, as shareholders adjusted their expectations about AI and U.S. economic prospects.

At the Semicon Taiwan industry forum in Taipei, Y.J. Mii, TSMC’s Executive Vice President and Co-Chief Operating Officer, emphasized that AI remains a substantial growth catalyst, although it may lead to shifts in global job markets. He stated, “I believe AI is a huge opportunity for all in our industry,” suggesting a potential 50% compound growth rate for AI accelerators over the next few years, with a wait-and-see approach for longer-term forecasts.

Next to him, Lee Jung-Bae, president of Samsung Electronics’ memory chip division, noted that the AI journey was just beginning. He acknowledged the potential for ups and downs but expressed confidence in its long-term steadiness, saying, “I am cautiously optimistic for AI.” He highlighted AI’s role in transforming everyday life.

In July, Samsung posted its highest operating profit since Q3 2022, driven by a rebound in its chip division, while TSMC raised its full-year revenue forecast due to increased demand for AI chips.