Takeaways

OpenAI's partnership with AMD marks a significant shift in AI compute.
AMD is positioning itself as a serious player in AI GPUs.
OpenAI's ambition to become a hyperscaler raises questions about funding.
The demand for AI compute is concentrated among a few major players.
Intel's Fab 52 showcases advanced manufacturing capabilities.
Intel's 18A process is competitive but needs to prove itself in products.
Qualcomm's acquisition of Arduino aims to strengthen its IoT strategy.
The AI infrastructure build-out is unprecedented in scale and cost.
There is uncertainty about the long-term demand for AI services.
The competitive landscape in cloud computing is rapidly evolving. 

Takeaways

The U.S. government now owns 10% of Intel, signaling confidence in the company.
The investment is part of a broader strategy to support semiconductor manufacturing in the U.S.
Intel's future hinges on securing customers and government support.
Nvidia's Spectrum XGS Ethernet allows for distributed GPU clusters across locations.
The competitive landscape is shifting, with Nvidia targeting Broadcom and Huawei.
Analog devices are seeing mixed signals in the market, particularly in automotive.
Robotics is an emerging area for analog devices, but still faces challenges.
Nvidia's upcoming earnings call is highly anticipated, with expectations of strong demand.
The relationship between the U.S. and China is affecting tech investments and sales.
The need for a strong board and expertise in manufacturing is crucial for Intel's success.

Takeaways

New regulations on semiconductors may be unconstitutional but are unlikely to be challenged.
Profitability concerns overshadow the earnings of cloud computing companies.
Demand for GPU compute is high, but electricity constraints limit growth.
Applied Materials faces uncertainty due to vague guidance and market dynamics.
Government involvement in Intel could complicate the free market.
The distinction between ownership and governance is crucial in state-owned enterprises.
The future of AI and cloud computing is tied to infrastructure and capacity.
Investors are skeptical about the viability of Neo cloud models.
The semiconductor industry is navigating a complex regulatory environment.

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The conversation covers the topic of NPUs (Neural Processing Units) and delves into their architecture, performance, and relevance in the semiconductor industry. The discussion also addresses the use of tops per watt as a metric for NPU performance and the design origins of NPUs, including the use of licensed IP and the evolution from DSPs to NPUs. The conversation delves into the topic of NPUs (Neural Processing Units) and their integration into various devices. The speakers discuss the origins of NPUs, their design philosophy, and the potential impact on consumer devices. They also explore the role of NPUs in edge devices, AI PCs, and the future of consumer use cases for AI. The conversation concludes with predictions about the widespread adoption of NPUs and their potential impact on the market.

In this episode, Ben Bajarin and Jay Goldberg discuss the skyrocketing capex by cloud hyper scalers and its implications. They explore the significant growth in capex spending by companies like Google, Microsoft, and Amazon, and the connection between capex and revenue growth. They also discuss the challenges of monetizing AI investments and the need for clear consumer use cases. The conversation touches on the potential for new innovations in AI wearables, AR glasses, autonomous cars, and robotics. They also consider the deflationary effects on costs and the timeline for the development of AI applications.

The recent downturn in semiconductor and AI-related stocks has sparked concerns about a bubble. The volatility in these stocks can be attributed to the unpredictability of retail investors and traders. The market is experiencing a correction, but it does not indicate a slowdown in AI. The hype around AI has been tempered by the realization that progress is slower than expected. The energy constraint is a topic of discussion, but improvements in hardware and software will continue to address this issue. The future of AI depends on the balance between compute power and energy efficiency.

In this conversation, Ben Bajarin and Jay Goldberg discuss the recent Intel webinar on the foundry business and the financial breakout for Intel Foundry Services (IFS). They analyze the financial details, including the higher costs and lower margins than expected, and the potential for improvement in the future. They also discuss the impact of the CHIPS Act and the subsidies received by TSMC for their Arizona foundries. The conversation concludes with a discussion on Intel's progress under CEO Pat Gelsinger and the opportunities and challenges they face in the data center and AI markets.

In this episode of The Circuit, Ben Bajarin and Jay Goldberg discuss the infrastructure side of telecom at Mobile World Congress. They highlight the importance of the show for telecom operators and the focus on networking and telecom infrastructure. The conversation covers the current state of 5G deployment and the upcoming transition to 6G. They also discuss the challenges and concerns in upgrading core networks and the potential costs and timing of 6G. The decline of millimeter wave technology and the use of custom silicon in telecom infrastructure are also explored, along with the advantages and disadvantages of custom chipsets. The conversation covers topics such as AI chip infrastructure in the telecom industry, Qualcomm's underwhelming presence at Mobile World Congress, Qualcomm's AI hub and centralized repository for AI models, Qualcomm's initiative to bring 5G to low-cost handsets, the competition between Qualcomm and MediaTek in the AI space, and Apple's update to the MacBook Air and its positioning as an AI platform.

Takeaways

• Mobile World Congress is an important show for telecom operators and focuses on networking and telecom infrastructure.
• The transition to 5G is currently underway, with 6G expected to be discussed and developed in the coming years.
• Upgrading core networks and improving network efficiency are ongoing challenges for telecom operators.
• The decline of millimeter wave technology and the use of custom silicon in telecom infrastructure are notable trends. AI chip infrastructure is not yet a priority in the telecom industry.
• Qualcomm's presence at Mobile World Congress was underwhelming.
• Qualcomm's AI hub provides a centralized repository for AI models.
• Qualcomm's initiative to bring 5G to low-cost handsets may face challenges in competing with MediaTek.
• The tension between premium and low-cost devices in the smartphone market continues.
• Apple is positioning the MacBook Air as an AI platform.

This episode of The Circuit discusses the recent Intel Foundry event and Nvidia's earnings. The conversation explores Intel's focus on becoming a leading foundry and its bet on advanced packaging. The hosts also discuss concerns about Intel's culture and execution, as well as the response from TSMC. The episode concludes with predictions about the future of the market and the role of Intel in the industry. In this conversation, Jay Goldberg and Ben Bajarin discuss the future of TSMC and Apple, Intel's commitment to Apple and chiplets, the push towards chiplets in PCs, Intel's relationship with TSMC, NVIDIA's clean quarter, retail interest in NVIDIA stock, the investor relations dilemma for NVIDIA, NVIDIA's product cadence and long-term expectations, and the inference market and competition.

Takeaways

• Intel is positioning itself as a leading foundry for complex systems of chips in the AI era.
• The success of Intel's foundry strategy will depend on its ability to deliver on technical innovation and overcome cultural challenges.
• TSMC remains a strong competitor in the market and has credibility in technical innovation.
• The customer dynamics and relationships with major wafer scale customers will play a crucial role in Intel's success as a foundry.
• The future of the market will likely involve a shift towards advanced packaging and chiplet designs. TSMC's future success depends on targeting a big volume platform like IFS in 2027.
• Intel's commitment to Apple may hinder their adoption and advancement of chiplets.
• PC CPU makers are under pressure to move towards chiplets, which may influence Apple's architecture decisions.
• NVIDIA's clean quarter and moderate beat and raise had a fairly moderate reaction in the stock market.
• NVIDIA's stock is heavily influenced by retail investors, which can lead to unpredictable swings.
• NVIDIA's product cadence and performance improvements, as well as supply chain constraints, are concerns for meeting revenue expectations.
• NVIDIA's long-term expectations and communication about the total addressable market may create heightened investor expectations.
• The inference market is still in early days, and competition is increasing.
• NVIDIA's software ties and workload advantage may give them an edge in the inference market.

In this episode, Ben Bajarin and Jay Goldberg discuss the puzzle of Intel foundries and the challenges of determining their revenue. They explore historical economics data points and the exit zone for leading-edge fabs. They analyze the revenue and financial projections for Intel Foundry Services (IFS) and the need for external customers. They also discuss the long-term outlook for IFS and potential scenarios for the future, including strategic partnerships and acquisitions. The episode concludes with the understanding that IFS will require a long-term timeframe and significant investment to become a competitive foundry.

Takeaways

• Determining the revenue of Intel foundries is a challenging puzzle due to the lack of access to data and cost information.
• Historical economics data points provide insights into the exit zone for leading-edge fabs and the challenges faced by companies in staying competitive.
• IFS revenue projections indicate the need for external customers to fund the investment in leading-edge fabs.
• The long-term outlook for IFS suggests that it will take time and significant investment to become a competitive foundry.
• Strategic partnerships and acquisitions may play a role in the future of IFS and the semiconductor industry.

The conversation discusses Sam Altman's plan to raise $7 trillion for semiconductors and the potential challenges and motivations behind it. It explores the idea of negotiation and leaked stories as part of the process. The conversation also delves into the simultaneous demand for compute in both hardware and software industries and the need for breakthroughs in technology. It highlights the importance of economic efficiency and competitiveness in the semiconductor industry. The conversation concludes by mentioning upcoming events and guests.

Takeaways

• Sam Altman's plan to raise $7 trillion for semiconductors has sparked discussions about the challenges and motivations behind such a massive fundraising effort.
• Negotiation and leaked stories may be part of the process as companies navigate the complexities of the semiconductor industry.
• The simultaneous demand for compute in both hardware and software industries is creating constraints and slowing down innovation.
• Economic efficiency and competitiveness are crucial factors in the semiconductor industry, and companies need to balance supply and demand.
• The industry may benefit from breakthroughs in technology and the commercialization of new processes and products.

In this episode, Ben Bajarin and Jay Goldberg discuss the outsized expectations for AI growth and the impact on stock market reactions. They explore the challenges of modeling AI growth and the difficulty of charging more for AI features. They also discuss the potential for AI to accelerate refreshment cycles and the importance of realistic expectations. The conversation highlights the small gains of AI in software and the experimentation stage of AI. They conclude by emphasizing the need to measure expectations and be reasonable in the AI industry.

Takeaways

• Outsized AI expectations have led to negative stock market reactions, as companies have not met ambitious growth models.
• Modeling AI growth is challenging due to variables such as product availability and demand.
• Charging more for AI features is difficult, as customers may not be willing to pay a premium.
• AI may not accelerate refreshment cycles, as the average consumer may not see significant improvements that warrant more frequent upgrades.
• The gains from AI are often small and incremental, but still important in improving efficiency and productivity.

In this episode, Ben Bajarin and Jay Goldberg discuss Intel's recent earnings call and the challenges the company is facing. They analyze the guidance provided by Intel and the concerns raised by investors. The conversation also delves into Intel's core businesses, including the consumer and data center groups, and the impact of competition from companies like Nvidia. The hosts explore Intel's partnership with UMC to increase trailing edge capacity and the potential for specialized trailing edge processes. They conclude by highlighting the need for Intel to prove itself in the coming quarters and address ongoing challenges.

Takeaways

• Intel's Q4 earnings call and guidance were a source of concern for investors, leading to a sell-off.
• The company's core businesses, particularly the data center group, face challenges and increased competition.
• Intel's partnership with UMC to increase trailing edge capacity signals a focus on specialized processes.
• The company needs to prove itself in the coming quarters and address ongoing challenges to regain investor confidence.

In this conversation, Ben Bajarin and Jay Goldberg discuss the latest news and trends in the semiconductor industry, with a focus on TSMC's strong earnings and growth forecast. They explore the importance of AI in TSMC's business and the strong position of NVIDIA in the AI market. They also discuss the challenges of designing AI-first silicon and the need for differentiation in AI accelerators. The conversation touches on the dynamics of leading-edge manufacturing, the transition from financial objectives to innovation in semiconductors, and the significance of Supermicro's pre-announcement. They conclude by emphasizing the importance of delivering on promises and providing predictable guidance in the industry.

Takeaways

• TSMC's strong earnings and growth forecast indicate a healthy year for the semiconductor industry, driven by demand for AI and leading-edge manufacturing.
• NVIDIA is well-positioned in the AI market, with strong engagement from AI leaders and a focus on AI-specific processors.
• The challenges of designing AI-first silicon and the lack of re-architecting for AI in most designs highlight the need for innovation in the industry.
• The transition from financial objectives to innovation and R&D is crucial for semiconductor companies to stay competitive.
• The temptation to talk about AI without substance and the importance of delivering on promises and providing predictable guidance are key considerations for companies in the industry.

In this episode, Ben Bajarin and Jay Goldberg discuss their experience at CES and the presence of AI in various products. They explore the evolution of massage chairs and the AI wash in the industry. They also analyze the two tracks of AI at CES, with a more muted presence in big vendor booths and a greater focus in Eureka Park. The conversation delves into the role of AI in semiconductor vendors and the importance of on-device AI. They discuss the balance between cloud and edge AI and the outlook for semiconductors in 2024. They also touch on the revival of VR and AR and the potential for exciting developments in the future.

Takeaways

CES featured a more muted presence of AI compared to previous years, with a focus on specific use cases rather than generative AI.
The massage chair industry has seen advancements in AI sensing and 5D rollers, but there is still an AI wash in the labeling of products.
Semiconductor vendors are re-examining their roadmaps to incorporate more on-device AI, recognizing the need for advanced sensor fusion and compute at the edge. The balance between cloud and edge AI is becoming more symbiotic, with a recognition that both are necessary for a comprehensive AI strategy. The outlook for semiconductors in 2024 is mixed, with a cyclically good year expected but uncertainty about significant advancements in consumer-facing AI.

Chapters

00:00 Introduction and CES Experience
01:09 The Fascination with Massage Chairs
05:02 The Muted Presence of AI at CES
26:06 The Compute Happening at the Edge
27:29 The Outlook for Semiconductors in 2024

In this episode, Ben Bajarin and Jay Goldberg discuss their hopes and predictions for the semiconductor industry in 2024. They cover topics such as the need for clarity of direction in automotive semis, the potential for partnerships and spin-offs in the industry, the importance of venture funding for semiconductor startups, the need for a more balanced and realistic narrative around AI, and the challenges and tensions between the US and China in the chip industry. They also make some speculative predictions about potential acquisitions and consolidation in the industry.

Takeaways

• The automotive semiconductor industry needs more clarity of direction to understand where it is headed.
• Partnerships and spin-offs could be a productive way for semiconductor companies to work together and fill gaps in their offerings.
• There is a need for more venture funding for semiconductor startups, as the industry is capital-intensive and often overlooked by investors.
• The narrative around AI needs to change to avoid overhyping and misunderstanding the technology.
• Reducing tensions between the US and China in the chip industry would benefit both countries and the global semiconductor ecosystem.

In this episode, Ben Bajarin and Jay Goldberg discuss recent semiconductor events, including Marvell's analyst day, AMD's Advancing AI event, and Intel's AI Everywhere event. They analyze the key takeaways from each event, including Marvell's focus on data infrastructure, AMD's new chiplet SOC and AI capabilities, and Intel's architectural advancements in client and data center products. The hosts also discuss the challenges and opportunities in the AI PC market and share their holiday wishes.

Takeaways

• Marvell is a data infrastructure company with strong product roadmaps and a focus on the data center.
• AMD's new chiplet SOC, Meteor Lake, represents a significant architectural advancement and could be a game-changer for the company.
• Intel's AI Everywhere event showcased their advancements in client and data center products, including chiplet-based SOCs and AI integration.
• The AI PC market presents challenges in terms of consumer adoption and pricing, but has potential for growth in enterprise and cloud applications.

In this conversation Ben Bajarin and Jay Goldberg have a discussion with Rene Haas, President of ARM, provides an overview of the company and its role as the brain that powers electronic devices. He explains ARM's business model of designing CPUs and licensing them to chip manufacturers. Haas discusses the value capture and increasing ARM's share of the value in the market. He highlights the growth drivers for ARM in various industries, including PCs, cloud data centers, networking, automotive, and IoT. Haas also addresses the impact of US sanctions on China and ARM's success in the Chinese market. He concludes by discussing ARM's partnership with Intel Foundry Services and the potential for chiplets.

Takeaways

• ARM is the brain that powers electronic devices and is present in a wide range of products, including cell phones, laptops, automobiles, data centers, and IoT devices.
• ARM's business model involves designing CPUs and licensing them to chip manufacturers, allowing them to build chips with ARM's designs.
• To increase its share of the value in the market, ARM is focusing on delivering full solutions, accelerating chip design, and developing new products for growing markets.
• ARM sees opportunities for growth in industries such as PCs, cloud data centers, networking, automotive, and IoT, driven by trends like AI and the need for more compute power.
• ARM is navigating US sanctions on China by complying with export control restrictions and focusing on areas where its software ecosystem and partnerships are strong.

• The Japanese semiconductor industry experienced a decline in the 1990s but is now showing signs of revitalization.
• Key players in the Japanese semiconductor industry include Tokyo Electron, Renesas, Sony, and Morata.
• The establishment of Rapidus, a consortium for semiconductor fabrication, demonstrates Japan's commitment to advancing its semiconductor capabilities.
• Collaboration between the US and Japan in the semiconductor industry is becoming increasingly important.

- Intel's products and product roadmap competitiveness 
- Read on What Public Investors took away
- Intel's Foundry Opportunity and Timing 

• Apple A17 Pro
• Arm IPO
• Huawei Kirin 9000
• China's Ambitions and the intent of sanctions

Show note links:
Register Report on Graviton Revenue

Link to Jay's article for relevant reading.  Enterprise Electronics | Digits to Dollars

Patrick McGee's column on Apple's tying its future to China.