According to reports from the Commercial Times, the PC chip supply chain has seen a surge in activity as government subsidies in mainland China have expanded to cover major cities. This has prompted brands to increase their orders, boosting short-term demand for the current quarter. Related IC design companies are expected to benefit from this trend.

The report reveals that the supply chain is responding to the rollout of home appliance subsidies in China, which initially covered only select cities. As other regions follow suit, demand for replacement and upgrades has surged, prompting brands to increase their stock, leading to more orders for IC suppliers.

However, some IC companies remain cautious, believing that the current demand surge may simply be pulling forward orders that would have been placed in the first quarter of next year. Since the subsidies end by the close of this year, they fear this could lead to a short-lived boom.

On the other hand, more optimistic players believe that as major IC manufacturers like AMD, Qualcomm, and Intel roll out NPUs with over 40 TOPS of computing power, combined with post-pandemic replacement demand, the market will see a significant boost. These companies are also expected to launch products at various price points, making AI-powered PCs more affordable in the coming year.

The report also noted that the PC market is expected to become more competitive as both x86 and Arm architectures begin supporting new AI applications. It is understood that some companies will start purchasing Arm-based PCs next year, signifying that Arm-based PCs have successfully entered the commercial sector, which will have a positive impact on building a complete ecosystem in the future.

Industry sources cited by the Commercial Times believe Qualcomm will be the first to benefit, while MediaTek is gearing up, with its chips expected to debut in the second quarter of next year and enter mass production in the third quarter.

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