Apple Joins Battle Against Nvidia – BusinessKorea
With Apple joining the AI chip development race alongside other major tech companies like Google and Microsoft, the competition among big tech firms to produce their own semiconductors is intensifying. Analysts believe this trend signals an anti-Nvidia alliance, and it is seen as a positive development for Taiwan’s TSMC, Samsung Electronics, and SK hynix.
The move toward AI semiconductor independence by major tech companies gained attention after Apple unveiled the M4 chip with AI capabilities on May 7 (local time). The Wall Street Journal (WSJ) had previously reported that Apple had been developing an AI semiconductor for data centers under the internal codename "Apple Chip for DataCenter" (ACDC) for several years. If the report is accurate, Apple is currently developing an AI chip while also releasing a system-on-chip (SoC) with enhanced AI features.
It’s unusual for Apple to attract this much attention for its AI initiatives on consecutive days. While Nvidia, Microsoft, Meta, Amazon, Alphabet, and Tesla have been actively showcasing their own AI chips, Apple has remained relatively quiet.
Apple’s unveiling of its AI semiconductor has sparked interest in the reinforced anti-Nvidia front. Nvidia currently dominates over 80% of the AI semiconductor market. Its products are in such high demand that some orders are not even being fulfilled due to shortages. The high prices are also significant, with a single H100 chip costing over 50 million won. This has driven many companies to develop their own AI semiconductors.
The semiconductor industry believes that if this trend continues, Nvidia could see a decline in revenue and a reduction in its influence over the AI semiconductor market due to the departure of major clients. Meanwhile, as AI semiconductors increase, Samsung Electronics and SK hynix, which offer high-bandwidth memory (HBM) and other high-value memory products, are expected to benefit.
TSMC, which provides foundry services for big tech clients like Apple, could also expand its market share and profits through increased AI chip orders. However, this may pose challenges for Samsung Electronics, which also operates a foundry business, as it could struggle to maintain its market share if TSMC gains ground.
Yet, despite the potential rise in TSMC’s market share, some predict that the AI semiconductor market is still growing and too vast for any single company to dominate completely.
Never miss another article! Enter your email address below to receive our free daily newsletter:
