ChatGPT Boosts Demand for 5nm Chips in AI Server Market, but Concerns Raised Over Its Impact on Entire Chip Industry

The demand for 5nm chip orders has increased due to the rising popularity of ChatGPT, benefitting many chip companies in the semiconductor industry. TSMC has received rush orders from major companies like NVIDIA, AMD, and Apple, for their AI server platforms, which has resulted in full utilization of the idle 5nm capacity.

However, recent news of AMD's cancellation of their 5nm orders has raised concerns about ChatGPT's ability to benefit the entire chip industry. The reason for AMD's cancellation is due to the decline of the entire server market, rather than the chip's popularity.

Reports suggest that the outlook for server procurement is optimistic, with cloud service providers like Meta, Microsoft, Google, and AWS all lowering their server procurement targets for 2023. This downgrade will affect the global server shipment growth rate, which is expected to be around 1.87% in 2023.

Despite the bearish outlook for cloud server manufacturers, there are still beneficiaries of ChatGPT's popularity, particularly in the AI server market. AI servers differ from regular servers due to the number of GPUs they possess and are designed for AI computing.

Data shows that the demand for AI servers will increase from $1.82 billion to $12.76 billion, with a compound annual growth rate of 91%. As an electronic components distributor, it's essential to keep an eye on the trends in the AI server market and anticipate the demand for 5nm chips for AI server platforms.