Global Artificial Intelligence (AI) Chips Market Size, Share & Growth and Trend Analysis Report, 2032

Summary
Market Landscape
Methodology
Table of Contents

Global Artificial Intelligence (AI) Chips Market Size, Share & Growth and Trend Analysis Report, By Chip Type (Graphics Processing Units, Application-Specific Integrated Circuits, Field-Programmable Gate Array, Central Processing Unit, and Others), By Processing Type (Edge AI, Cloud AI), By End User (Data Centers, Automotive, Consumer Electronics, Healthcare, and Others), By Computing Power (High Performance, Mid-Range, Entry Level), and By Regional Forecasts (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa), 2024 – 2032

The Global Artificial Intelligence (AI) Chip Market represents a rapidly evolving sector focused on developing specialized semiconductor solutions designed to accelerate artificial intelligence and machine learning workloads. These AI chips/artificial intelligence chipsets are fundamental to advancing AI capabilities across various industries and applications.

The Global Artificial Intelligence Chip Market was valued at USD XX billion in 2024. It is projected to reach USD XX billion by 2032, exhibiting a remarkable compound annual growth rate (CAGR) approximately of 25% from 2025 to 2032.

Industry Trends

The Global Artificial Intelligence (AI) Chip Market is experiencing unprecedented transformation, driven by the exponential growth in AI applications and the increasing demand for efficient computing solutions. The market has shifted from general-purpose processors to specialized AI processor chips, AI microchips, and AI system on chips (SoCs) that can handle complex neural networks and machine learning algorithms more efficiently.

The industry is witnessing intense competition between traditional semiconductor giants and top AI chip makers, all striving to develop more powerful and energy-efficient artificial intelligence chips. Companies are increasingly focusing on developing custom silicon solutions optimized for specific AI workloads, from cloud computing to edge devices. Major players in the market, including top AI chip companies, are competing for increased AI chip market share.

However, the market faces several challenges, including high development costs, complex design requirements, semiconductor supply chain constraints, and the ongoing need for improved power efficiency. The industry also grapples with concerns about chip sovereignty, AI chip manufacturing complexities, and geopolitical tensions affecting global supply chains.

Industry Expert's Opinion:

Gina Raimondo Commerce Secretary, United Kingdom

“As AI becomes more powerful, the risks to our national security become even more intense,”. The framework “is designed to safeguard the most advanced AI technology and ensure that it stays out of the hands of our foreign adversaries but also enabling the broad diffusion and sharing of the benefits with partner countries.”

Christophe Fouquet CEO at ASML Holding

“A lower cost of AI could mean more applications. More applications mean more demand over time. We see that as an opportunity for more chip demand,”

TT Consultants’ Perspective

The AI chip market shows exceptional growth potential, driven by the accelerating adoption of AI across industries and the increasing complexity of AI models. The market is expected to benefit from continued technological innovations, increasing investments in AI research and development, and the growing demand for efficient AI computing solutions across cloud and edge applications. Major AI chip companies and AI chip manufacturers are set to play a pivotal role in shaping the future landscape of this market.

The industry is likely to see further specialization in chip designs, with different architectures optimized for specific AI workloads. The competition between traditional semiconductor companies and AI-focused chip makers will drive innovation and potentially lead to breakthrough technologies in artificial intelligence chip acceleration.

Market Segmentation

1. By Chip Type (Graphics Processing Units (GPU), Application-Specific Integrated Circuits (ASIC), Field-Programmable Gate Array (FPGA), Central Processing Unit (CPU), and Others)

The GPU segment dominated with a XX% revenue share in 2024, primarily due to its versatility in training large AI models and established ecosystem support. NVIDIA's leadership in this segment has been particularly influential in the artificial intelligence chip market.

The ASIC segment is expected to show the highest growth rate between 2025 and 2032 for the global Artificial Intelligence (AI) Chip Market, driven by the increasing demand for purpose-built chips optimized for specific AI workloads, offering superior performance and energy efficiency.

Key players are focusing on custom silicon designs, including AI processor chips and AI microchips.

2. By Processing Type (Edge AI, Cloud AI)

Cloud AI processing held the largest revenue share of XX% in 2024, reflecting the massive computational requirements of training large language models and other sophisticated AI systems. AI chip companies and AI chip manufacturers are heavily investing in enhancing cloud-based AI chip solutions.

Edge AI processing is projected to experience rapid growth during the forecast period in the global Artificial Intelligence Chip Market, fueled by the increasing need for real-time processing in IoT devices, autonomous vehicles, and smart devices using AI system on chips and AI chipsets.

3. By End User (Data Centers, Automotive, Consumer Electronics, Healthcare, and Others)

The data center segment led the market in 2024 and is expected to maintain its dominant position throughout the forecast period. This dominance is driven by the growing adoption of AI in cloud services, big data analytics, and enterprise applications powered by high-performance AI chips.

The automotive segment shows the highest growth potential, particularly with the advancement of autonomous driving technologies and AI-powered vehicle systems, relying on cutting-edge artificial intelligence chips.

4. By Computing Power (High Performance, Mid-Range, Entry Level)

The high-performance segment captured XX% of the market share in 2024, driven by the requirements of training large AI models and handling complex AI workloads in data centers. These systems often utilize AI chipsets, AI processors, and AI chip companies’ advanced solutions.

The mid-range segment is expected to show significant growth, particularly in edge computing applications and smaller enterprises adopting AI solutions, supported by mid-tier AI chip manufacturers.

5. By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa)

Asia Pacific dominated the global Artificial Intelligence (AI) Chip Market with a value of USD billion in 2024, primarily due to strong manufacturing capabilities in countries like Taiwan, South Korea, and China, along with significant investments in AI technology. Leading AI chip suppliers and manufacturers in these regions contribute to this growth.

North America follows closely and is expected to show substantial growth, driven by major tech companies' investments in AI research and development, particularly in Silicon Valley, home to top AI chip makers and key AI chip companies.

Competitive Scenario

The market features a mix of established semiconductor companies and AI-focused startups. Key players include NVIDIA Corporation, AMD, Intel Corporation, Qualcomm, Google (TPU), and Apple (Neural Engine). Notable emerging players include Graphcore, Cerebras Systems, and SambaNova Systems among others.

Recent Developments and Strategic Activities:

In December 2024, Broadcom Inc., a key chip supplier for Apple, achieved a market valuation of USD 1 trillion, driven by a significant surge in demand for its artificial intelligence (AI) chips. On December 13, the company's stock price soared by 24% to USD 224.80, marking its largest single-day gain since 2009. This growth was propelled by Broadcom's optimistic forecast for its AI product sales, anticipating a 65% increase in the first fiscal quarter, significantly outpacing the company's overall semiconductor growth of 10%. Looking ahead, Broadcom projects that the addressable market for its AI components, primarily utilized in data centers, could reach USD 90 billion by fiscal 2027. This milestone underscores Broadcom's expanding influence in the semiconductor industry and its pivotal role in advancing AI technology.
In December 2024, The United States has approved the export of advanced AI chips to the UAE AI firm G42 through a strategic partnership with Microsoft, marking a significant shift in technological trade relations.
In May 2024, Arm Holdings announced plans to develop artificial intelligence (AI) chips, targeting the launch of its first products in 2025. The UK-based company intends to establish an AI chip division, aiming to build a prototype by spring 2025, with mass production expected to commence in autumn 2025. Initial development costs will be covered by Arm, with contributions from its parent company, SoftBank. Once mass production is established, there is potential for the AI chip business to be spun off under SoftBank. Negotiations are underway with manufacturers, including Taiwan Semiconductor Manufacturing Corp (TSMC), to secure production capacity. This strategic move signifies Arm's expansion into the data-center market, aiming to provide operators with chips capable of powering new AI models and reducing reliance on dominant suppliers like Nvidia.
In April 2024, Meta Platforms unveiled the Meta Training and Inference Accelerator (MTIA), its next-generation artificial intelligence (AI) chip designed to enhance the efficiency of ranking and recommendation algorithms. This development follows Meta's strategic shift in March 2024 from TSMC to Samsung Foundry for AI chip manufacturing, aiming to leverage Samsung's advanced semiconductor capabilities. The MTIA chip is expected to reduce Meta's reliance on third-party providers, offering improved performance and energy efficiency for AI applications across platforms such as Facebook, Instagram, and WhatsApp.