Technology Magazine December 2024 | Page 84

DIGITAL TRANSFORMATION
The company has begun working with Samsung Electronics , the South Korean semiconductor manufacturer , to diversify its production base .
Semiconductor manufacturing requires significant capital investment and technical expertise . New facilities , known as fabs , cost upwards of US $ 10 billion to construct and take several years to begin production .
The demand for AI processors has reshaped manufacturing priorities . TSMC has allocated additional production capacity to these chips , reflecting their higher profit margins compared to traditional processors .
With data centres equipped with AI processors consuming significant electrical power , Nvidia has also focused on improving the energy efficiency of its processors to address environmental concerns .
The company ’ s latest chips include features that reduce power consumption during periods of low utilisation . Software tools help data centre operators optimise workload distribution for energy efficiency .
“ For three decades we ’ ve pursued accelerated computing , with the goal of enabling transformative breakthroughs like deep learning and AI ,” says Huang . “ Working with the most dynamic companies in the world , we will realise the promise of AI for every industry .”
Future market development Market analysts expect continued growth in AI processor demand . Enterprise software increasingly incorporates AI features , creating new processing requirements across industries . The development of more sophisticated AI models drives demand for increased computing power . These models require larger datasets and more complex calculations for training and operation .
84 December 2024