[Peace&Chips] Semiconductor Market Outlook Seen by ChatGPT: "More Semiconductors Needed for AI and Machine Learning"

Semiconductor Industry Anticipates ChatGPT Boom
"Greater Impact Than AlphaGo Shock"
ChatGPT Expected to Drive Semiconductor Market Growth

Editor's NoteSemiconductors, known as the rice of modern industry. Although it's a term we hear every day, it's hard to explain when asked. Peace & Chips will make the complex concepts and overall trends of the semiconductor industry easy to digest for you. Just place your spoon on it.

[Peace&Chips] Semiconductor Market Outlook Seen by ChatGPT: "More Semiconductors Needed for AI and Machine Learning"

[Asia Economy Reporter Kim Pyeonghwa] ChatGPT is the talk of the town. ChatGPT is a conversational AI chatbot introduced by the American AI research institute OpenAI, and it has attracted global attention, surpassing 100 million monthly active users (MAU) in January. The service was launched at the end of last year, and its user base has exploded in a short period.

The semiconductor industry is highly optimistic about the ChatGPT craze. They expect that as conversational AI services increase starting with ChatGPT, the demand for high-performance semiconductors will also rise. Since high-performance semiconductors are more expensive, this is a good opportunity to increase profitability.

We asked ChatGPT directly. "What impact will ChatGPT have on the semiconductor market?" ChatGPT focused more on the indirect effects caused by the AI technology enabling the service rather than the direct impact of the service itself.

ChatGPT said, "Semiconductors are essential components for the development and implementation of AI and machine learning systems. Demand for AI and machine learning technologies is increasing across various industries, and operating these requires a large number of semiconductors. (ChatGPT) is likely to drive growth in the semiconductor market."

It also said, "The development and use of AI and machine learning technologies drive advances in semiconductor technology, leading to the development of more advanced and efficient semiconductors. This further drives growth in the semiconductor market." It sees the ripple effect as potentially significant in many ways.

The response content from ChatCPT when asked about the semiconductor market outlook in Korean / [Image source=Captured from ChatCPT]

So far, the semiconductor industry has grown significantly whenever new demand markets have emerged. PCs and smartphones are representative examples. Since the personal computer era began in 1977, various technologies and products have been developed to meet new demands. When the iPhone appeared in 2007, ushering in the smartphone era, the semiconductor industry faced another turning point.

The industry sees ChatGPT as a variable that could bring about a new wave of change. Accordingly, Samsung Electronics and SK Hynix are focusing on developing next-generation products such as High Bandwidth Memory (HBM) and Processing-In-Memory (PIM). HBM has more data transmission channels than conventional DRAM, enabling rapid processing of large amounts of data. PIM is characterized by performing computation functions within memory that also serves storage functions.

"The ChatGPT phenomenon is the second AI shock following AlphaGo. During AlphaGo, the public did not play Go matches with AlphaGo, but with ChatGPT, everyone can experience it, making the impact even greater. Along with various AI services in the future, semiconductor demand will also increase significantly." As Kim Hyeongjun, head of the Next-Generation Intelligent Semiconductor Business Group, said, we should pay attention to the changes that are coming.