Semiconductors designed to execute artificial intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the semiconductor industry in 2023, an increase of 20.9% from 2022,\u00a0according to the latest forecast from Gartner, Inc.<\/p>\n\n\n\n
\u201cThe developments in\u00a0generative AI\u00a0and the increasing use of a wide range\u00a0AI-based applications\u00a0in data centers, edge infrastructure and endpoint devices require the deployment of high performance graphics\u00a0processing units\u00a0(GPUs) and optimized semiconductor devices. This is driving the production and deployment of AI chips,\u201d said\u00a0Alan Priestley, VP Analyst at Gartner.<\/p>\n\n\n\n
AI semiconductor revenue will continue to experience double-digit growth through the forecast period, increasing 25.6% in 2024 to $67.1 billion (see Table 1). By 2027, AI chips revenue is expected to be more than double the size of the market in 2023, reaching $119.4 billion.<\/p>\n\n\n\n
Table 1. AI Semiconductors Revenue Forecast, Worldwide, 2022-2024 (Millions of U.S. Dollars)<\/strong><\/p>\n\n\n\n Source: Gartner (August 2023)<\/p>\n\n\n\n Many more industries and IT organizations will deploy systems that include AI chips as the use of AI-based workloads in the enterprise matures. In the consumer electronics market, Gartner analysts estimate that by the end of\u00a02023, the value of AI-enabled application processors used in devices will amount to $1.2 billion, up from $558 million in 2022.<\/p>\n\n\n\n The need for efficient and optimized designs to support cost effective execution of AI-based workloads will result in an increase in deployments of custom-designed AI chips. \u201cFor many organizations, large scale deployments of custom AI chips will replace the current predominant chip architecture \u2013 discrete GPUs \u2013 for a wide range of AI-based workloads, especially those based on generative AI techniques,\u201d said Priestley.<\/p>\n\n\n\n Generative AI is also driving demand for high-performance computing systems for development and deployment, with many vendors offering high performance GPU-based systems and networking equipment seeing significant near-term benefits. In the long term, as the hyperscalers look for efficient and cost-effective ways to deploy these applications, Gartner expects an increase in their use of custom-designed AI chips.\u00a0<\/p>\n\n\n\n Gartner clients can read more in\u00a0\u201cForecast: AI Semiconductors, Worldwide, 2021-2027, 2Q23 Update.\u201d<\/p>\n\n\n\n Learn how to lead through change spurred by generative AI in the complimentary Gartner webinar\u00a0\u201cHow CIOs Can Lead Through Generative AI\u2019s Business Implications.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Semiconductors designed to execute artificial intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the semiconductor industry in 2023, an increase of 20.9% from 2022,\u00a0according to the latest forecast from Gartner, Inc. \u201cThe developments in\u00a0generative AI\u00a0and the increasing use of a wide range\u00a0AI-based applications\u00a0in data centers, edge infrastructure and endpoint devices require the […]<\/p>\n","protected":false},"author":2,"featured_media":21037,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post-21035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"rttpg_featured_image_url":{"full":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors.jpg",2100,1400,false],"landscape":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors.jpg",2100,1400,false],"portraits":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors.jpg",2100,1400,false],"thumbnail":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors-150x150.jpg",150,150,true],"medium":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors-300x200.jpg",300,200,true],"large":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors-1536x1024.jpg",1536,1024,true],"2048x2048":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors-2048x1365.jpg",2048,1365,true],"post-thumbnail":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors.jpg",630,420,false],"graptor-sq-xs":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2023\/08\/Semiconductors.jpg",100,67,false]},"rttpg_author":{"display_name":"Admin CG","author_link":"https:\/\/web3unplugged.io\/blog\/author\/admin-cg\/"},"rttpg_comment":0,"rttpg_category":"news<\/a>","rttpg_excerpt":"Semiconductors designed to execute artificial intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the semiconductor industry in 2023, an increase of 20.9% from 2022,\u00a0according to the latest forecast from Gartner, Inc. \u201cThe developments in\u00a0generative AI\u00a0and the increasing use of a wide range\u00a0AI-based applications\u00a0in data centers, edge infrastructure and endpoint devices require the…","_links":{"self":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/21035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/comments?post=21035"}],"version-history":[{"count":1,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/21035\/revisions"}],"predecessor-version":[{"id":21038,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/21035\/revisions\/21038"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/media\/21037"}],"wp:attachment":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/media?parent=21035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/categories?post=21035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/tags?post=21035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/td> 2022<\/strong><\/td> 2023<\/strong><\/td> 2024<\/strong><\/td><\/tr> Revenue ($M)<\/td> 44,220<\/td> 53,445<\/td> 67,148<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n