BENGALURU: Qualcomm Chief Executive Officer Cristiano Amon has expressed optimism regarding the future of chip supply in light of the burgeoning demand for artificial intelligence (AI) technologies.
Amon’s remarks, delivered at the Web Summit conference in Lisbon, highlight a critical distinction between the current landscape of semiconductor production and the challenges faced during the Covid-19 pandemic.
“During the pandemic, an unprecedented surge in consumer electronics demand, fueled by widespread remote work and home entertainment needs, overwhelmed the existing supply chain.”
Amon noted that while this spike in demand benefitted the semiconductor business, it exposed significant vulnerabilities within the supply chain, leading to shortages that affected various industries. However, he assured stakeholders that extensive investments have since been made to enhance chip production capacity.
According to Qualcomm Chief Executive Officer Cristiano Amon, the current state of demand and supply in the semiconductor market is “a hundred per cent balanced,” suggesting that the industry has learned from past disruptions.
State-backed investments
Moreover, the global response to the semiconductor shortages has been robust, with governments around the world increasing state-backed investments to bolster domestic production capabilities.
Notably, Japan’s Prime Minister Shigeru Ishiba recently announced over $65 billion in support for the nation’s semiconductor and AI sectors, aiming to maintain competitiveness against major players such as the United States, the European Union, and China.
The wave of investment underscores the recognition of semiconductors as a foundational industry crucial for technological advancement and economic stability.
Amon’s confidence is further supported by Qualcomm’s optimistic sales forecast, driven by the anticipated growth in demand for AI-enabled smartphones. He emphasised that consumers are increasingly inclined to upgrade to more advanced devices equipped with AI functionalities.
“The trend indicates a sustained interest in innovation and technological enhancement, which is likely to further stimulate the semiconductor market.”
