Tokyo Electron expects boost from generative AI as early as 2024

Chip equipment maker projects memory-related demand to pick up toward year-end

Tokyo Electron expects its GPU-related equipment to drive growth over the medium- to long-term. (Photo by Keiichiro Sato)

KENTARO TSUTSUMI, Nikkei staff writer

July 4, 2023 11:40 JST

TOKYO -- Chipmaking equipment maker Tokyo Electron could see competition for generative artificial intelligence lift earnings as early as 2024, Senior Vice President Hiroshi Kawamoto told Nikkei.

The semiconductor industry is expected to enjoy a major boost as technology companies around the world race to develop generative AI, such as ChatGPT. While Nvidia currently dominates the market for graphics processing units, which let AI models learn from large amounts of data, rivals like Advanced Micro Devices are eager to catch up.