The article discusses the earnings reports of ASML and TSMC, two major semiconductor companies, and their implications for the AI chip market. ASML, a key supplier of equipment for chipmakers, reported strong demand for its extreme ultraviolet (EUV) lithography systems, driven by the need for advanced chips for AI applications. TSMC, the world’s largest contract chipmaker, also saw increased orders for its most advanced 3-nanometer chips, which are expected to power the next generation of AI hardware. The article highlights the growing demand for AI chips, fueled by the rapid adoption of AI technologies across various industries. It suggests that the surge in demand for AI chips could lead to a supply crunch in 2024, as chipmakers struggle to keep up with the increasing orders. The article also notes that the success of ASML and TSMC underscores the importance of advanced semiconductor manufacturing capabilities in enabling the development of powerful AI systems.
Source: https://www.businessinsider.com/asml-tsmc-earnings-demand-ai-chips-2024-10