Artificial Intelligence (AI) Chip Market by Chip Type (GPU, ASIC, FPGA, CPU, and Other Chip Type), by Architecture (System on Chip (SOC), System in Package (SIP), Multi Chip Module, and Other Architecture), by Processing Type (Edge and Cloud), by Applicat

Artificial Intelligence (AI) Chip Market by Chip Type (GPU, ASIC, FPGA, CPU, and Other Chip Type), by Architecture (System on Chip (SOC), System in Package (SIP), Multi Chip Module, and Other Architecture), by Processing Type (Edge and Cloud), by Application (Natural Language Processing (NLP), Robotic Process Automation, Computer Vision, Network Security, and Others) and End User (Media and Advertising, BFSI, IT and Telecommunication, Retail, Healthcare, Automotive, and Other End User) – Global Opportunity Analysis and Industry Forecast, 2024–2030

The Artificial Intelligence (AI) Chip Market size was valued at USD 39.73 billion in 2023, and is predicted to reach USD 296.23 billion by 2030, with a CAGR of 33.2% during the forecast period, 2024–2030.

The AI chip, also known as logic chips or AI accelerator refers to the market for specialized semiconductor chips designed to accelerate artificial intelligence (AI) and machine learning (ML) workloads, serving a diverse range of enterprise and industrial customers across various sectors, including technology and cloud computing, automotive, industrial automation, healthcare, telecommunications, and retail and e-commerce.

The integration of AI chips into IoT devices drives market growth by enabling real-time data processing and analytics at the device level. This facilitates enhanced operational efficiency across industries such as manufacturing and healthcare, meeting the increasing demand for immediate insights and predictive capabilities. According to the International Data Corporation (IDC), the global spending on the Internet of Things (IoT) is projected to reach USD 805.7 billion in 2023, a 10.6% increase from 2022

However, the semiconductor shortage severely impacted the AI chip market, causing supply chain disruptions and extended wait times, despite rising global demand and geopolitical tensions.

On the contrary, the introduction of 2-nanometer (nm) chipsets presents a significant opportunity for the AI chip market, enhancing performance, reducing power consumption, and enabling more complex AI applications.

Segment Overview
The global AI chip industry is segmented on the basis of chip type, architecture, processing type, application end user, and region.
 By chip type, the market is divided into GPU, ASIC, FPGA, CPU, and other chip type.
 By architecture, market is classified into system on chip (SOC), system in package (SIP), multi-chip module, and other architecture.
 By processing Type, the categorized into edge and cloud.
 By application, the market is divided into natural language processing (NLP), robotic process automation, computer vision, network security, and others.
 By end user, the market is segmented into media and advertising, BFSI, IT and telecommunication, retail, healthcare, automotive, and other end user.
 By region, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world (RoW).

Regional Analysis
Asia-Pacific holds the dominant share in AI chip market
Asia-Pacific leads the AI chip market with established semiconductor giants such as TSMC, Samsung, SMIC, and SK hynix. Samsung's recent launch of a 2-nanometer process underscores its bid to advance foundry capabilities, targeting substantial growth in AI chip business by 2028.

Moreover, the rapidly increasing investments across Asian countries such as China, South Korea, Taiwan, Japan, and India are fueling substantial growth in the AI chip industry, bolstering innovation and production capacities globally. Malaysia, supported by investments from global chipmakers, is poised to strengthen its chip manufacturing role, exemplified by Infineon's significant investments in expanding its facilities in the country.

Key Market Players
The key players in the global AI chip market include:
• NVIDIA Corporation
• Advanced Micro Devices, Inc. (AMD)
• Intel Corporation
• Alphabet Inc.
• Amazon Web Services, (AWS) Inc.
• International Business Machines (IBM) Corporation
• Alibaba Group Holding Limited
• Apple Inc.
• Meta Platforms, Inc.
• Microsoft Corporation
• Huawei Technologies Co., Ltd.
• MediaTek Inc.
• Qualcomm Incorporated
• Samsung Electronics
• Cerebras Systems Inc.

Recent Developments
June 2024
NVIDIA launched its latest AI chip Rubin soon after its predecessor, ""Blackwell,"" at COMPUTEX in Taipei. With this launch NVIDIA aimed to stay way ahead of its competitors such as AMD and Intel in the rapidly growing market for AI chips.

June 2024
AMD launched its latest AI accelerator chips, the AMD Instinct MI300X series, featuring CDNA 3 architecture and up to 4TB/s memory bandwidth through HBM stacking. This is aimed at challenging NVIDIA’s Rubin, as these chips promise up to 8x better AI training performance and pave the way for CDNA 4 in 2025 with projected 35x better AI inference performance.

May 2024
Google launched its Trillium chip, an AI accelerator aimed at boosting data center performance by 5x, emphasizing its commitment to innovating in the AI chip market for efficient cloud and data center operations.

May 2024
AWS with NinjaTech AI AWS to launch advanced AI agents named ""Ninja,"" powered by Amazon's Trainium and Inferentia2 chips. These agents excel in tasks such as research, meeting scheduling, and coding assistance, leveraging AWS's SageMaker for scalability and efficiency in training large language models.

KEY BENEFITS
• The report provides quantitative analysis and estimations of the AI chip market from 2024 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of the AI chip market trends, including the current and future trends to depict the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the AI chip market is provided in the report.
• The competitive analysis of the market players along with their market share in the AI chip market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders.