Qualcomm CEO Assures No AI Chip Shortage Despite Rising Demand
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Qualcomm CEO Sees No Shortage of AI Chips Even as Demand Rises
Qualcomm Inc. Chief Executive Officer Cristiano Amon said the artificial intelligence boom won't lead to a global chip shortage similar to what happened during the pandemic, even with demand for AI-enabled smartphones rising. "During the pandemic everybody was home and started buying consumer electronics," he said at the Web Summit conference in Lisbon on Tuesday. "It was good for the business, but the supply chain was not able to handle." Since then, he added, "a lot" of investment has been made to increase the production capacity of chips.
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AI Demand Won't Cause Global Chip Shortage, Says Qualcomm CEO: Report
Qualcomm expects continued growth in smartphone processor demand due to AI features. Qualcomm CEO Cristiano Amon reassured that the artificial intelligence (AI) boom will not trigger a global chip shortage similar to the one experienced during the pandemic. Speaking at the Web Summit in Lisbon, he attributed the 2020 crisis to an unexpected surge in consumer electronics demand, which overwhelmed supply chains, Bloomberg reported. Also Read: Qualcomm Partners with Google to Transform Automotive Cockpits with Generative AI "It was good for the business, but the supply chain was not able to handle. Since then, a lot of investment has been made to increase the production capacity of chips. Today, demand and supplies are a hundred percent balanced within semiconductors," he said, according to the report. Governments worldwide have ramped up semiconductor investments following the pandemic-induced shortages. Japan Prime Minister recently pledged over USD 65 billion to support its semiconductor and AI industries, aiming to compete with the US, EU, and China in securing semiconductor production. Qualcomm, the world's largest smartphone processor vendor, last week gave a bullish sales forecast for the current quarter. Amon reportedly said that demand for smartphone processors will continue to grow as users upgrade to more technically advanced phones that offer AI features. Also Read: Qualcomm Announces Snapdragon 8 Elite Chip for On-Device Generative AI "Users when they think about buying their next phone, they want to buy a better phone," Amon reportedly said at the conference on Tuesday. "We have seen that consistently and I expect that the capabilities of having processing of AI and AI use cases are actually going to continue to accelerate that trend."
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Qualcomm's CEO Cristiano Amon states that the AI boom won't lead to a global chip shortage, citing increased production capacity and balanced supply-demand in the semiconductor industry.
Qualcomm CEO Addresses AI Chip Supply Concerns
Cristiano Amon, CEO of Qualcomm Inc., has reassured the tech industry that the current artificial intelligence (AI) boom is unlikely to trigger a global chip shortage similar to the one experienced during the COVID-19 pandemic. Speaking at the Web Summit conference in Lisbon, Amon highlighted the differences between the current situation and the pandemic-induced shortage 1.
Lessons Learned from Pandemic Shortages
Amon explained that the chip shortage during the pandemic was primarily due to an unexpected surge in consumer electronics demand as people were confined to their homes. "During the pandemic everybody was home and started buying consumer electronics," he stated. "It was good for the business, but the supply chain was not able to handle." 1
Increased Production Capacity
Since the pandemic-induced shortage, significant investments have been made to boost chip production capacity. Amon emphasized, "Today, demand and supplies are a hundred percent balanced within semiconductors." This increased capacity has positioned the industry to better handle the rising demand for AI-enabled devices 2.
Global Semiconductor Investments
Governments worldwide have recognized the importance of semiconductor production and have increased investments in the sector. For instance, Japan's Prime Minister recently pledged over $65 billion to support its semiconductor and AI industries, aiming to compete with the US, EU, and China in securing semiconductor production 2.
Growing Demand for AI-Enabled Smartphones
As the world's largest smartphone processor vendor, Qualcomm anticipates continued growth in demand for smartphone processors. Amon noted that users are increasingly looking to upgrade to more technically advanced phones with AI features. "Users when they think about buying their next phone, they want to buy a better phone," he said. "We have seen that consistently and I expect that the capabilities of having processing of AI and AI use cases are actually going to continue to accelerate that trend." 2
Qualcomm's Optimistic Outlook
Qualcomm's recent bullish sales forecast for the current quarter reflects the company's confidence in the growing demand for AI-enabled devices. The company's position as a leader in smartphone processors puts it at the forefront of the AI revolution in mobile technology 2.
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