Qualcomm signs equipment deal for SpaceX's planned US 5G network
Deployment is set to begin in 2027 at tens of thousands of macro cell sites. Financial terms were not disclosed.
AI chip demand squeezes supply for other uses, Siltronic chief says
Siltronic lifted its annual sales outlook for a second time this year as wafer demand strengthened.
Strong demand from AI data centers is leaving fewer semiconductors available for phones and computers, Siltronic CEO Michael Heckmeier said in a November 4 interview. He said chip shortages were holding back growth in some markets outside AI.
The silicon wafer producer increased its full-year sales forecast on November 4, its second upward revision this year, citing improved demand for wafers used to manufacture semiconductors.
Heckmeier said chip suppliers direct their output to buyers offering the highest prices. AI businesses, especially hyperscalers, have the deepest financial resources, he said, giving them an advantage over customers in other segments.
The demand extends beyond the number of servers being built. AI server farms use more silicon area—roughly three to four times more—than traditional servers, Heckmeier said, lifting requirements for advanced wafers.
Heckmeier reported no indication that AI demand was slowing. A moderation would not necessarily interrupt semiconductor industry growth, he said, because manufacturers could shift capacity back toward smartphones, PCs and other applications where he said underlying demand remained solid.