The Circuit

SummaryThe conversation discusses Sam Altman's plan to raise $7 trillion for semiconductors and the potential challenges and motivations behind it. It explores the idea of negotiation and leaked stories as part of the process. The conversation also delves into the simultaneous demand for compute in both hardware and software industries and the need for breakthroughs in technology. It highlights the importance of economic efficiency and competitiveness in the semiconductor industry. The conversation concludes by mentioning upcoming events and guests.TakeawaysSam Altman's plan to raise $7 trillion for semiconductors has sparked discussions about the challenges and motivations behind such a massive fundraising effort.Negotiation and leaked stories may be part of the process as companies navigate the complexities of the semiconductor industry.The simultaneous demand for compute in both hardware and software industries is creating constraints and slowing down innovation.Economic efficiency and competitiveness are crucial factors in the semiconductor industry, and companies need to balance supply and demand.The industry may benefit from breakthroughs in technology and the commercialization of new processes and products.

SummaryIn this episode, Ben Bajarin and Jay Goldberg discuss the outsized expectations for AI growth and the impact on stock market reactions. They explore the challenges of modeling AI growth and the difficulty of charging more for AI features. They also discuss the potential for AI to accelerate refreshment cycles and the importance of realistic expectations. The conversation highlights the small gains of AI in software and the experimentation stage of AI. They conclude by emphasizing the need to measure expectations and be reasonable in the AI industry.TakeawaysOutsized AI expectations have led to negative stock market reactions, as companies have not met ambitious growth models.Modeling AI growth is challenging due to variables such as product availability and demand.Charging more for AI features is difficult, as customers may not be willing to pay a premium.AI may not accelerate refreshment cycles, as the average consumer may not see significant improvements that warrant more frequent upgrades.The gains from AI are often small and incremental, but still important in improving efficiency and productivity.

SummaryIn this episode, Ben Bajarin and Jay Goldberg discuss Intel's recent earnings call and the challenges the company is facing. They analyze the guidance provided by Intel and the concerns raised by investors. The conversation also delves into Intel's core businesses, including the consumer and data center groups, and the impact of competition from companies like Nvidia. The hosts explore Intel's partnership with UMC to increase trailing edge capacity and the potential for specialized trailing edge processes. They conclude by highlighting the need for Intel to prove itself in the coming quarters and address ongoing challenges.TakeawaysIntel's Q4 earnings call and guidance were a source of concern for investors, leading to a sell-off.The company's core businesses, particularly the data center group, face challenges and increased competition.Intel's partnership with UMC to increase trailing edge capacity signals a focus on specialized processes.The company needs to prove itself in the coming quarters and address ongoing challenges to regain investor confidence.

SummaryIn this conversation, Ben Bajarin and Jay Goldberg discuss the latest news and trends in the semiconductor industry, with a focus on TSMC's strong earnings and growth forecast. They explore the importance of AI in TSMC's business and the strong position of NVIDIA in the AI market. They also discuss the challenges of designing AI-first silicon and the need for differentiation in AI accelerators. The conversation touches on the dynamics of leading-edge manufacturing, the transition from financial objectives to innovation in semiconductors, and the significance of Supermicro's pre-announcement. They conclude by emphasizing the importance of delivering on promises and providing predictable guidance in the industry.TakeawaysTSMC's strong earnings and growth forecast indicate a healthy year for the semiconductor industry, driven by demand for AI and leading-edge manufacturing.NVIDIA is well-positioned in the AI market, with strong engagement from AI leaders and a focus on AI-specific processors.The challenges of designing AI-first silicon and the lack of re-architecting for AI in most designs highlight the need for innovation in the industry.The transition from financial objectives to innovation and R&D is crucial for semiconductor companies to stay competitive.The temptation to talk about AI without substance and the importance of delivering on promises and providing predictable guidance are key considerations for companies in the industry.

SummaryIn this episode, Ben Bajarin and Jay Goldberg discuss their experience at CES and the presence of AI in various products. They explore the evolution of massage chairs and the AI wash in the industry. They also analyze the two tracks of AI at CES, with a more muted presence in big vendor booths and a greater focus in Eureka Park. The conversation delves into the role of AI in semiconductor vendors and the importance of on-device AI. They discuss the balance between cloud and edge AI and the outlook for semiconductors in 2024. They also touch on the revival of VR and AR and the potential for exciting developments in the future.TakeawaysCES featured a more muted presence of AI compared to previous years, with a focus on specific use cases rather than generative AI.The massage chair industry has seen advancements in AI sensing and 5D rollers, but there is still an AI wash in the labeling of products.Semiconductor vendors are re-examining their roadmaps to incorporate more on-device AI, recognizing the need for advanced sensor fusion and compute at the edge. The balance between cloud and edge AI is becoming more symbiotic, with a recognition that both are necessary for a comprehensive AI strategy. The outlook for semiconductors in 2024 is mixed, with a cyclically good year expected but uncertainty about significant advancements in consumer-facing AI.Chapters00:00 Introduction and CES Experience01:09 The Fascination with Massage Chairs05:02 The Muted Presence of AI at CES26:06 The Compute Happening at the Edge27:29 The Outlook for Semiconductors in 2024

SummaryIn this episode, Ben Bajarin and Jay Goldberg discuss their hopes and predictions for the semiconductor industry in 2024. They cover topics such as the need for clarity of direction in automotive semis, the potential for partnerships and spin-offs in the industry, the importance of venture funding for semiconductor startups, the need for a more balanced and realistic narrative around AI, and the challenges and tensions between the US and China in the chip industry. They also make some speculative predictions about potential acquisitions and consolidation in the industry.TakeawaysThe automotive semiconductor industry needs more clarity of direction to understand where it is headed.Partnerships and spin-offs could be a productive way for semiconductor companies to work together and fill gaps in their offerings.There is a need for more venture funding for semiconductor startups, as the industry is capital-intensive and often overlooked by investors.The narrative around AI needs to change to avoid overhyping and misunderstanding the technology.Reducing tensions between the US and China in the chip industry would benefit both countries and the global semiconductor ecosystem.

SummaryIn this episode, Ben Bajarin and Jay Goldberg discuss recent semiconductor events, including Marvell's analyst day, AMD's Advancing AI event, and Intel's AI Everywhere event. They analyze the key takeaways from each event, including Marvell's focus on data infrastructure, AMD's new chiplet SOC and AI capabilities, and Intel's architectural advancements in client and data center products. The hosts also discuss the challenges and opportunities in the AI PC market and share their holiday wishes.TakeawaysMarvell is a data infrastructure company with strong product roadmaps and a focus on the data center.AMD's new chiplet SOC, Meteor Lake, represents a significant architectural advancement and could be a game-changer for the company.Intel's AI Everywhere event showcased their advancements in client and data center products, including chiplet-based SOCs and AI integration.The AI PC market presents challenges in terms of consumer adoption and pricing, but has potential for growth in enterprise and cloud applications.

SummaryIn this conversation Ben Bajarin and Jay Goldberg have a discussion with Rene Haas, President of ARM, provides an overview of the company and its role as the brain that powers electronic devices. He explains ARM's business model of designing CPUs and licensing them to chip manufacturers. Haas discusses the value capture and increasing ARM's share of the value in the market. He highlights the growth drivers for ARM in various industries, including PCs, cloud data centers, networking, automotive, and IoT. Haas also addresses the impact of US sanctions on China and ARM's success in the Chinese market. He concludes by discussing ARM's partnership with Intel Foundry Services and the potential for chiplets.TakeawaysARM is the brain that powers electronic devices and is present in a wide range of products, including cell phones, laptops, automobiles, data centers, and IoT devices.ARM's business model involves designing CPUs and licensing them to chip manufacturers, allowing them to build chips with ARM's designs.To increase its share of the value in the market, ARM is focusing on delivering full solutions, accelerating chip design, and developing new products for growing markets.ARM sees opportunities for growth in industries such as PCs, cloud data centers, networking, automotive, and IoT, driven by trends like AI and the need for more compute power.ARM is navigating US sanctions on China by complying with export control restrictions and focusing on areas where its software ecosystem and partnerships are strong.

The conversation explores the current state of the Japanese semiconductor industry and its history of decline in the 1990s. It discusses the structure of the industry, key players, and recent developments such as the establishment of Rapidus, a consortium aimed at advancing semiconductor fabrication in Japan. The conversation also touches on the visit of Japan's Minister of Economy, Trade and Industry to UC Berkeley and the potential for collaboration between the US and Japan in the semiconductor industry. Overall, the discussion highlights the renewed interest and efforts in revitalizing the Japanese semiconductor industry.The Japanese semiconductor industry experienced a decline in the 1990s but is now showing signs of revitalization.Key players in the Japanese semiconductor industry include Tokyo Electron, Renesas, Sony, and Morata.The establishment of Rapidus, a consortium for semiconductor fabrication, demonstrates Japan's commitment to advancing its semiconductor capabilities.Collaboration between the US and Japan in the semiconductor industry is becoming increasingly important.

In this week's episode, Ben Bajarin and Jay Goldberg chatted about companies pushing the limits of what is possible with technology and breaking new ground with new products and experiences.  They discuss the impacts this has on the semiconductor landscape and why its a necessary, even if awkward, step to progress.