On May 20th, Intel announced that the release date for its next-generation processor, Lunar Lake, has been moved up, with official shipments expected in the third quarter. The NPU performance is set to reach 45 TOPS. However, per a report from Economic Daily News, the industry is puzzled by the fact that this chip is bundled with 16GB and 32GB memory, with Intel holding the specification control tightly. Reportedly, this move has disrupted the industry order, and PC manufacturers are said to be privately expressing their dissatisfaction.

It is expected that 20 brands will release 80 models featuring this processor. Combined shipments of Metro Lake and Lunar Lake this year are projected to reach 40 million units. Unlike the previous generation, Lunar Lake’s packaging design integrates LPDDR5x memory into a single package, emphasizing low power consumption.

On May 20th, Microsoft launched its next-generation AI PCs, equipped with a more powerful AI assistant, Copilot, and new features. It also established a new standard for AI PC architecture, “Copilot+ PC.” The initial products all feature Qualcomm’s “Snapdragon X Elite” processors designed with Arm architecture.

Qualcomm’s CPUs in the new PCs are equipped with a Neural Processing Engine (NPE) designed specifically for AI applications, boasting 45 TOPS. This, as per another report from the Economic Daily News, results in a 58% increase in speed and extended battery life compared to Apple’s latest top-tier MacBook, which uses the M3 chip. Additionally, they support Microsoft’s AI chatbot, Copilot.

Intel, on the other hand, made a rare announcement, revealing that its next-generation Lunar Lake will have a total performance exceeding 100 TOPS, with the NPU alone exceeding 45 TOPS—nearly three times that of the previous generation. Additionally, the CPU and GPU combined computing power will exceed 60 TOPS, making it the second qualified processor for Microsoft’s Copilot+ PC platform.

However, it is important to note that according to Intel’s plans, the new generation processors Ultra 5/7/9 will be bundled with memory and shipped together with the CPU. Specifically, the high-end Ultra 9 will be bundled with 32GB of memory, while the Ultra 5 and Ultra 7 will have 16GB and 32GB versions. Per Microsoft’s recommendations, AI PCs need at least 16GB of memory. While Intel’s approach meets this requirement, it limits the ability of brands to adjust specifications and leaves memory manufacturers out of the loop.

In simpler terms, there is still a demand for 8GB memory in lower-end notebooks, and high-end laptops can require more than 64GB of memory. However, Intel’s Lunar Lake constraints make it difficult to plan both high-end and entry-level versions. Industry sources cited in the same report from Economic Daily News indicate that Intel’s next-generation Arrow Lake will not be bundled with memory.

Reportedly, industry sources also state that procurement contracts with memory suppliers have traditionally been long-term, accounting for annual memory requirements. Now, Intel’s bundling of memory with its single platform changes the industry’s ecosystem. Previously, PC brands would develop various combinations (CPU + memory + SSD capacity) for their product lines. However, with Intel defining five laptop CPU + memory specifications, it limits the customization capabilities of PC brands.

With Intel launching Lunar Lake early, AMD is set to counter with its next-generation AI processor Ryzen series named Strix Point in the fourth quarter. The Strix Point processor will feature AI processing power exceeding 50 TOPS, and there will also be an APU, Strix Halo, expected to launch around the end of the year with performance exceeding 60 TOPS, making it a significant player in AI computing power.

CEO Pat Gelsinger recently demonstrated the performance of the Lunar Lake processor, emphasizing that its total AI workload exceeds 100 TOPS, with the NPU contributing 45 TOPS. The CPU features Lion Cove architecture P-cores and Skymont architecture E-cores, while the GPU and CPU together provide over 60 TOPS of computing power. This means Intel’s chip AI performance will be more than three times that of current products, with a total combined performance exceeding 100 TOPS.

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(Photo credit: Intel)

As the era of AI advances, following NVIDIA’s application to the Ministry of Economic Affairs (MOEA) for the “A+ Industrial Innovative R&D Program,”  which led to the establishment of the first R&D center in Asia and the creation of Taiwan’s largest AI supercomputer, “Taipei-1”, American AI chip giant AMD is set to follow suit.

According to a report from UDN, AMD plans to invest NTD 5 billion (roughly USD 155 million) to establish an R&D center in Taiwan and intends to apply for the A+ Industrial Innovative R&D Program from the MOEA, highlighting Taiwan’s critical role in AI chip design and manufacturing.

The MOEA has confirmed that AMD applied for the A+ Industrial Innovative R&D Program subsidy at the end of 2023. However, the funding for the program has already been exhausted. Therefore, funds must be allocated in the fifth phase of the A+ Industrial Innovative R&D Program, with the science and technology budget to be set for 2025.

This budget allocation must be approved by the new government administration. Additionally, MOEA officials stated that AMD must submit a concrete plan and gain approval from a review committee established by the Industrial Technology Department of the MOEA.

Previously, the MOEA’s substantial subsidies to global companies under the A+ Industrial Innovative R&D Program sparked mixed reactions within the industry. Some prominent local IC design companies criticized the MOEA, arguing that supporting global companies leads to competition against local businesses and drains valuable local R&D talent.

To avoid controversy, the MOEA has set forth four specific requirements for AMD.

First, they hope AMD will collaborate with Taiwanese IC design companies. Second, any AI servers developed should be manufactured in Taiwan. Third, at least 20% of the R&D workforce should be sourced from abroad, and high-level executives should be stationed in Taiwan. Fourth, AMD should partner with Taiwanese universities to cultivate talent jointly. The MOEA reports that AMD’s response has been very positive, and a thorough review of the application will take place in the second half of the year.

To date, the MOEA’s A+ Industrial Innovative R&D Program has approved subsidies only for two global companies, Micron and NVIDIA, providing them with NTD 4.722 billion (USD 146.48 million) and NTD 6.7 billion (USD 207.8 million), respectively. The MOEA believes this strategy helps solidify Taiwan’s competitive edge in the global semiconductor and AI sectors.

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The latest challenger has emerged in the battle for dominance in China’s GPU and graphics card market. China’s LinJoWing has unveiled its self-developed second-generation graphics processing chip, the GP201, reportedly boasting performance metrics surpassing that of AMD’s E8860 embedded graphics card.

According to a report from global media outlet Tom’s Hardware, LinJoWing, despite being only three years old, has demonstrated with its GP201 GPU performance comparable to AMD’s E8860 integrated graphics card from a decade ago. While the GPU is already in production and available in China, it has yet to surface on American shopping websites.

As per a report from Chinese media outlet IT Home, the GP201 outperforms the AMD E8860 embedded graphics card in various aspects such as 3D performance, 2D polygon rendering, ellipse rendering, pixel and image shifting, window rendering, and support for the domestic OpenCL library platform.

Additionally, LinJoWing’s GP201 GPU supports multiple Chinese-made processors and operating systems, with single-precision floating-point computing power reaching 1.2 Tflops. It supports 4K 60Hz display and H.265 decoding, with a maximum power consumption of 30W. Currently, five models of the GPU have been released in full-height, half-height, MXM, and other forms.

Tom’s Hardware believes that the performance of the GP201 is actually unimpressive. NVIDIA’s entry-level product, the GT 1030, released in 2017, matches the GP201 in terms of clock speed, TFLOPS, and power consumption, with eBay prices generally below $50. The GT 1030 benefits from mature NVIDIA drivers, making it difficult for LinJoWing to reach this level. However, LinJoWing’s ability to enter production after only three years of establishment gives it a competitive edge over other Chinese graphics cards.

This year, LinJoWing also surpassed its competitor Loongson in the low-end GPU market. However, challenging its biggest competitor, Moore Threads, will require further effort. Currently, Moore Threads’ flagship GPU’s specifications can rival NVIDIA’s RTX 3060 Ti.

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(Photo credit: AMD)

“The Dawn of Generative AI Has Come!” This new chapter in the course of human technological evolution was first introduced by NVIDIA’s founder, Jensen Huang. Qualcomm’s CEO, Cristiano Amon, also shares this optimism regarding generative AI. Amon believes this technology is rapidly evolving and being adopted for applications such as mobile devices. It is expected to have the potential to radically transform the landscape of the smartphone industry. Similarly, Intel has declared the arrival of the “AI PC” era, signaling a major shift in computing-related technologies and applications.

This year, AI is transitioning from cloud computing to on-premise computing. Various “AI PCs” and “AI smartphones” are being introduced to the market, offering a wide range of selections. The current year of 2024 is even being referred to as the “Year of AI PC,” with brands such as Asus, Acer, Dell, Lenovo, and LG actively releasing new products to capture market share. With the rapid rise of AI PCs and AI smartphones, revolutionary changes are expected to occur in workplaces and people’s daily lives. Furthermore, the PC and smartphone industries are also expected to be reinvigorated with new sources of demand.

An AI PC refers to a laptop (notebook) computer capable of performing on-device AI computations. Its main difference from regular office or business laptops lies in its CPU, which includes an additional neural processing unit (NPU). Examples of AI CPUs include Intel’s Core Ultra series and AMD’s Ryzen 8040 series. Additionally, AI PCs come with more DRAM to meet the demands of AI computations, thereby supporting related applications like those involving machine learning.

Microsoft’s role is crucial in this context, as the company has introduced a conversational AI assistant called “Copilot” that aims to seamlessly integrate itself into various tasks, such as working on Microsoft Office documents, video calls, web browsing, and other forms of collaborative activities. With Copilot, it is now possible to add a direct shortcut button for AI on the keyboard, allowing PC users to experience a holistic collaborative relationship with AI.

In the future, various computer functions will continue to be optimized with AI. Moreover, barriers that existed for services such as ChatGPT, which still require an internet connection, are expected to disappear. Hence, AI-based apps on PCs could one day be run offline. Such a capability is also one of the most eagerly awaited features among PC users this year.

Surging Development of LLMs Worldwide Has Led to a Massive Increase in AI Server Shipments

AI-enabled applications are not limited to PCs and smartphones. For example, an increasing number of cloud companies have started providing services that leverage AI in various domains, including passenger cars, household appliances, home security devices, wearable devices, headphones, cameras, speakers, TVs, etc. These services often involve processing voice commands and answering questions using technologies like ChatGPT. Going forward, AI-enabled applications will become ubiquitous in people’s daily lives.

Not to be overlooked is the fact that, as countries and multinational enterprises continue to develop their large language models (LLMs), the demand for AI servers will increase and thus promote overall market growth. Furthermore, edge AI servers are expected to become a major growth contributor in the future as well. Small-sized businesses are more likely to use LLMs that are more modest in scale for various applications. Therefore, they are more likely to consider adopting lower-priced AI chips that also offer excellent cost-to-performance ratios.

TrendForce projects that shipments of AI servers, including models equipped with GPUs, FPGAs, and ASICs, will reach 1.655 million units in 2024, marking a growth of 40.2% compared with the 2023 figure. Furthermore, the share of AI servers in the overall server shipments for 2024 is projected to surpass 12%.

Regarding the development of AI chips in the current year of 2024, the focus is on the competition among the B100, MI300, and Gaudi series respectively released by NVIDIA, AMD, and Intel. Apart from these chips, another significant highlight of this year is the emergence of in-house designed chips or ASICs from cloud service providers.

In addition to AI chips, the development of AI on PCs and smartphones is certainly another major driving force behind the technology sector in 2024. In the market for CPUs used in AI PCs, Intel’s Core Ultra series and AMD’s Ryzen 8000G series are expected to make a notable impact. The Snapdragon X Elite from Qualcomm has also garnered significant attention as it could potentially alter the competitive landscape in the near future.

Turning to the market for SoCs used in AI smartphones, the fierce competition between Qualcomm’s Snapdragon 8 Gen 3 and MediaTek’s Dimensity 9300 series is a key indicator. Another development that warrants attention is the adoption of AI chips in automotive hardware, such as infotainment systems and advanced driver assistance systems. The automotive market is undoubtedly one of the main battlegrounds among chip suppliers this year.

The supply chain in Taiwan has played a crucial role in providing the hardware that supports the advancement of AI-related technologies. When looking at various sections of the AI ecosystem, including chip manufacturing as well as the supply chains for AI servers and AI PCs, Taiwan-based companies have been important contributors.

Taiwan-based Companies in the Supply Chain Stand Ready for the Coming Wave of AI-related Demand

In the upstream of the supply chain, semiconductor foundries and OSAT providers such as TSMC, UMC, and ASE have always been key suppliers. As for ODMs or OEMs, companies including Wistron, Wiwynn, Inventec, Quanta, Gigabyte, Supermicro, and Foxconn Industrial Internet have become major participants in the supply chains for AI servers and AI PCs.

In terms of components, AI servers are notable for having a power supply requirement that is 2-3 times greater than that of general-purpose servers. The power supply units used in AI servers are also required to offer specification and performance upgrades. Turning to AI PCs, they also have higher demands for both computing power and energy consumption. Therefore, advances in the technologies related to power supply units represent a significant indicator this year with respect to the overall development of AI servers and AI PCs. Companies including Delta Electronics, LITE-ON, AcBel Polytech, CWT, and Chicony are expected to make important contributions to the upgrading and provisioning of power supply units.

Also, as computing power increases, heat dissipation has become a pressing concern for hardware manufacturers looking to further enhance their products. The advancements in heat dissipation made by solution providers such as Sunon, Auras, AVC, and FCN during this year will be particularly noteworthy.

Besides the aforementioned companies, Taiwan is also home to numerous suppliers for other key components related to AI PCs. The table below lists notable component providers operating on the island.

With the advent of generative AI, the technology sector is poised for a boom across its various domains. From AI PCs to AI smartphones and a wide range of smart devices, this year’s market for electronics-related technologies is characterized by diversity and innovation. Taiwan’s supply chain plays a vital role in the development of AI PCs and AI servers, including chips, components, and entire computing systems. As competition intensifies in the realm of LLMs and AI chips, this entire market is expected to encounter more challenges and opportunities.

Join the AI grand event at Computex 2024, alongside CEOs from AMD, Intel, Qualcomm, and ARM. Discover more about this expo! https://bit.ly/44Gm0pK

(Photo credit: Qualcomm)

AMD benefited from AI demand last quarter (January to March), with revenue of USD 5.47 billion, surpassing Wall Street expectations and turning a profit compared to the same period last year. However, this quarter’s fiscal forecast and market outlook are not as expected.

AMD achieved a net profit of USD 120 million last quarter, with an adjusted EPS of USD 0.62, surpassing Wall Street’s expected USD 0.61. AMD expects revenue for this quarter to be between USD 5.4 billion and USD 6 billion, with a midpoint of USD 5.7 billion, a 6% increase from the same period last year but slightly below Wall Street’s expected USD 5.73 billion.

After enduring a downturn in the semiconductor industry, AMD finally returned to profitability last quarter, largely due to strong sales of its MI300 series AI chips, which drove revenue in the data center division to grow by 80% year-on-year to USD 2.3 billion.

As per a report from the Wall Street Journal, AMD CEO Lisa Su stated that since the launch of the latest MI300X chip at the end of last year, sales have surpassed $1 billion, with major customers including Microsoft, Meta, Oracle, among other tech giants.

In January, Lisa Su had forecasted that AMD’s AI chip revenue for this year could reach USD 3.5 billion, which was recently revised upwards to USD 4 billion. The AMD MI300 series chips are seen as direct competitors to NVIDIA’s H100 chips. However, NVIDIA announced its new generation AI chip architecture, Blackwell, in March this year, forcing AMD to accelerate its pace. Lisa Su stated that AMD is already developing the next generation of AI chips.

AMD’s client division, which sells PC chips, has also benefited from the AI wave, with revenue increasing by 85% year-on-year to USD 1.4 billion last quarter, once again proving the recovery and growth of the global PC market. AMD’s chips for PCs are capable of executing AI computations locally, targeting the increasingly expanding demand for AI-enabled PCs.

Regarding the applications of AI PCs, Su previously stated in an interview with Sina that she found communication, productivity, and creativity particularly exciting. Many applications are still in their early stages, but she expects to see more developments in the coming years.

However, AMD’s businesses outside of AI chips are facing increasing challenges. Revenue from the gaming console chip division declined by 48% year-on-year to USD 920 million last quarter, falling short of Wall Street’s expectations of USD 970 million. Additionally, the revenue from the embedded chip division, established after AMD’s acquisition of Xilinx in 2022, also decreased by 46% year-on-year to USD 850 million last quarter, similarly below Wall Street’s expectations of USD 940 million.

TrendForce previously issued an analysis in a press release, indicating that the AI PC market is propelled by two key drivers: Firstly, demand for terminal applications, mainly dominated by Microsoft through its Windows OS and Office suite, is a significant factor. Microsoft is poised to integrate Copilot into the next generation of Windows, making Copilot a fundamental requirement for AI PCs.

Secondly, Intel, as a leading CPU manufacturer, is advocating for AI PCs that combine CPU, GPU, and NPU architectures to enable a variety of terminal AI applications.

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(Photo credit: AMD)