Reconstructing the Semiconductor Value Chain under AI: A Design-Manufacturing Comparison

Zhenyu Xu ()
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Zhenyu Xu: Guilin University of Electronic Technology, School of Business

A chapter in Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), 2025, pp 623-631 from Springer

Abstract: Abstract The emergence of artificial intelligence as a transformative general-purpose technology is reshaping industries worldwide, with the semiconductor sector standing at the core of this evolution. As AI applications grow rapidly, particularly those requiring massive computing power, the semiconductor industry faces significant structural and strategic shifts. While much attention has been paid to technological innovations, few studies have examined how this wave of AI-driven demand is impacting different segments of the semiconductor value chain. This article takes NVIDIA on the design side and TSMC on the manufacturing side as the research objects, and analyzes the changes in their financial performance and profit models during the outbreak of AI computing power from 2019 to 2024. Research finds that generative AI has led to a sharp increase in computing power demand. In the relevant business, the design part has witnessed a significant increase in both revenue and profit margins. Manufacturing part can also benefit from generative AI, but the benefits are not immediate and there is a time lag. The significance of this research lies in breaking through the traditional patterns or scopes, providing guidance in formulating strategies and relevant policies, and offering a standard example to other similar cross - field studies.

Keywords: Artificial Intelligence; Semiconductor; Profit Model; Vector Autoregression; Impulse Response Function Analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-874-5_72

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