AI Industry Development Reaches Peak Period: TSMC's AI Order Share Expected to Grow by About 6% Next Year
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AI Industry Development Reaches Peak Period: TSMC's AI Order Share Expected to Grow by About 6% Next Year
According to Taiwan's Economic Daily News, industry sources indicate that TSMC's six major AI client groups will increase their wafer demand next year. TSMC's AI order share is expected to grow significantly by about 6% in 2024 compared to this year, reaching a historic high and becoming one of the driving forces for next year's operations. These six AI client groups include NVIDIA, AMD, Tesla, Apple, Intel, and other international giants that develop their own AI chips and place orders with TSMC.
TSMC released its Q2 2023 financial report: consolidated revenue for Q2 was NT$480.84 billion (approximately RMB 111 billion), with a net profit of NT$181.8 billion (approximately RMB 42 billion), and diluted earnings per share of NT$7.01. Revenue decreased by 10% year-on-year and 5.5% quarter-on-quarter, while net profit declined by 12.2% quarter-on-quarter.
By region, revenue from North American clients accounted for 66% of total revenue, up from 63% in Q1, while revenue from China accounted for 12%, down from 15% in the previous quarter.
TSMC forecasts Q3 sales of $16.7 billion to $17.5 billion, representing a quarter-on-quarter growth of 6.5%-11.6%, with an average increase of about 9.1%, which is about 10% lower than market expectations. The Q3 gross margin is projected to be 51.5%-53.5%, lower than Q2's 54.1%, while the operating margin is expected to be 38%-40%, down from 42% in Q2. TSMC attributes this partly to the dilution effect of initial 3nm production.
The China AI Industry Market Panoramic Survey and Investment Value Assessment Research Report, led by industry analysis experts from CIC, provides an in-depth analysis of the AI industry's market size, development status, and investment prospects. It also offers scientific trend predictions and professional industry data analysis to help clients assess the industry's investment value.
"AI+" may usher in a new wave of technological advancement and productivity growth. Mastering smarter artificial programs and more powerful chip manufacturing means securing the future. As a result, competition between China and the U.S. in this field is intensifying, with the U.S. gradually escalating sanctions against China, from targeting chip companies to pushing for supply chain decoupling.
From the perspective of core technologies in AI enterprises, big data and cloud computing account for the highest proportion at 41.13%, followed by hardware, machine learning and recommendation, and service robots at 7.64%, 6.81%, and 5.64%, respectively. IoT, industrial robots, speech recognition, and natural language processing account for 5.55%, 5.47%, and 4.76%, respectively.
Currently, the integration of the AI industry with the real economy has made positive progress, with a number of typical AI application scenarios established in key industries such as manufacturing, transportation, healthcare, education, and finance.
Statistics show that China's core AI industry market size reached RMB 151.3 billion, a year-on-year increase of 38.93%, while the related industry market size reached RMB 572.6 billion, up 49.82% year-on-year. It is estimated that by 2025, the core AI industry market size will reach RMB 453.3 billion, with the related industry market size reaching approximately RMB 1.6648 trillion.
Data indicates that the number of AI-related patent applications in China reached 19,945, a year-on-year increase of 20.6%. The number of registered AI-related enterprises reached 355,900, up 93.6% year-on-year.
Industry insiders point out that as user demands for home comfort increase and technology matures, AI will further penetrate various product categories. It is predicted that by 2025, AI technology will be integrated into nearly 50% of smart home products, further serving users' daily lives.
According to the 2023-2027 China Artificial Intelligence Industry Panoramic Survey and Development Strategy Research Report by CIC Research Institute, large models like ChatGPT present new opportunities for the smart home industry. Advances in AI technology will enable better conversational interactions between humans and home appliances, pushing smart home technology to new heights.
The China AI Large Model Map Research Report reveals that China's AI large models, combining "big data + massive computing power + strong algorithms," are developing rapidly. China now ranks second globally in the number of developed large models, trailing only the United States, with 79 models exceeding 1 billion parameters already released.
On one hand, ChatGPT remains closed-source with unclear monetization models, while its operational costs remain prohibitively high - creating both time and space for domestic AI firms to respond while offering opportunities for other industry players.
On the other hand, ChatGPT's technical capabilities haven't reached ideal levels, requiring more time for product iteration, ecosystem development, and profitability realization.
The AIGC industrial ecosystem comprises three layers: infrastructure, models, and applications. The infrastructure layer includes three core elements - data, computing power, and algorithms - supported by cloud service providers and AI chip companies that enable generative AI model training and inference through advanced machine learning algorithms and massive datasets.
The model layer consists of vertical, scenario-specific, and personalized models like ChatGPT. The application layer delivers content generation services (text, images, audio/video) to end-users, exemplified by popular AI products.
Currently, most Chinese companies focus on application-layer innovations like virtual humans and AIGC, while infrastructure and model development remains concentrated among tech giants.
China maintains long-term advantages in AI development as both software and hardware innovations ultimately serve application needs. With the world's largest consumer market and strong application-layer innovation capabilities surpassing Western counterparts, sustained capital investment, technological progress, and institutional improvements will ensure China's ultimate victory in global AI competition.
AI industry reports employ authoritative national statistics and macro-micro analytical methods to profile the sector, featuring detailed enterprise analyses through data visualization that clarifies market structures, operational efficiencies, and supply-demand dynamics - becoming indispensable tools for market intelligence.