Home » Technology » Samsung Electronics and TSMC presence will grow… Generative AI, changing the game

Samsung Electronics and TSMC presence will grow… Generative AI, changing the game

Deloitte Korea Group report released
Presenting the impact and outlook of generative AI
Attention of foundry companies in the Asia-Pacific region increases

Photo = Yonhap News As major semiconductor companies around the world expand their spending on chip design using artificial intelligence (AI) tools, there are observations that the presence of foundry (semiconductor consignment production) companies such as Samsung Electronics and TSMC is increasing. As generative AI grows, there is also a prediction that the proportion of dedicated data centers will increase and countries in the Asia-Pacific region will lead the hardware market.

On the 25th, Deloitte Korea Group released a report titled ‘Generative AI Trends and Forecasts in the TMT (Technology, Media, and Telecommunications) Sector in the Asia-Pacific Region’. The report presents the impact and outlook that generative AI will have on major industries in the Asia-Pacific region.

According to the report, the size of the generative AI special chip and server hardware market in the global market this year is estimated to exceed $50 billion. As of 2027, the forecast size of the AI ​​chip market is expected to reach $400 billion. The majority of companies will integrate generative AI technology into some of their products. The sales generated through this alone are expected to reach approximately $10 billion.

In particular, both the application-related software/solution service market and the hardware market are expected to achieve continued growth. The report said, “In the Asia-Pacific region, the introduction of AI is occurring rapidly through government policy support, but there are also cases where countries, such as the Chinese government, seek to control generative AI technology,” and “overcoming challenges such as insufficient infrastructure and delays in digitalization of small and medium-sized businesses is necessary.” “It must be done,” he ordered.

Generative AI is expected to change the global IT industry centered on software after 2025. Analysis shows that apps are emerging as a major business in the Asia-Pacific region with the introduction of generative AI and are having an impact on the solution market.

The report said, “The proportion of data centers dedicated to generative AI is expected to increase, and countries in the Asia-Pacific region are expected to lead the hardware market. With generative AI, the hardware and update market is expected to develop beyond software after 2025. “The Asia-Pacific region, which is already a leader in hardware production, is expected to create an even stronger growth engine,” he predicted.

An outlook on the semiconductor industry was also presented. The world’s major semiconductor companies spent about $300 million last year on chip design using AI tools, and this amount is expected to exceed $500 million by 2026.

The report said, “As demand for generative AI chips increases, the presence of foundry companies in the Asia-Pacific region, such as Samsung Electronics and TSMC, is growing,” adding, “The current image processing semiconductor (GPU) market is dominated by major fabless (semiconductor design companies) in the United States. “Although they are leading the way, they are cooperating with semiconductor manufacturing companies in the Asia-Pacific region to produce, and as a result, semiconductor manufacturing and inspection process technology in the Asia-Pacific region is also rapidly growing and rapidly expanding its market share,” he explained.

Generative AI is expected to bring changes to the content and sports industries. It is expected to grow the content industry by providing new opportunities for consumers to create content and change the existing sports industry by integrating virtual reality and metaverse technologies.

The report said, “For the future of generative AI, app functionality will expand as multimodality, robotics technology, and energy-saving technology advance, but strong regulations on data security, privacy, and copyright compliance will also be needed.” “Excluding jobs, new employment opportunities will be created, and companies must minimize concerns about intellectual property rights, respond to errors and hallucinations, the risk of false information, and the limitations of training data,” he said.

Choi Ho-gae, partner at Deloitte Korea Group, said, “Although challenges such as strong regulations are expected due to the introduction of generative AI in the Asia-Pacific region, we will fundamentally innovate various TMT industries ranging from IT to communications and sports.”

Kim Dae-young, Hankyung.com reporter kdy@hankyung.com

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