In a recent report titled Powering AI: The Semiconductor Ecosystem at the Foundation of Data Centers, the Semiconductor Industry Association (SIA), in partnership with Deloitte, reveals that semiconductors account for 95% of an AI data server rack’s value, encompassing the full stack of chip technologies.
The study estimates annual revenue from chips deployed in AI data centers could reach over $1.2 trillion by 2028, a nearly tenfold increase over four years. The report offers a unique, inside-out look at the heart of AI infrastructure by conducting a virtual teardown of a state-of-the-art AI data server rack, the foundational unit of centralized AI infrastructure.
Additional report findings
- AI data centers need huge amounts of compute, storage, and memory bandwidth, power distribution, and networking capabilities, all provided by the full stack of chip technologies.
- In total, a single AI server rack contains over 4,500 packaged chips. These include:
- Advanced logic chips, such as AI accelerators, application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), central processing units (CPUs), data processing units (DPUs), and networking chips
- Memory, such as high-bandwidth memory (HBM), both dynamic and static random-access memory (DRAM and SRAM), and non-volatile flash memory (NAND)
- Analog and foundational chips, such as power chips, transceivers, controllers, and sensors
- To meet global demand for new AI applications, government and industry will invest over $4 trillion in new data center infrastructure through 2028, of which up to $2.8 trillion will be spent on semiconductors.
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