Anticipated Surge in Data Center AI Chip Packaging from 2025 to 2030

Strong Growth Anticipated for Data Center AI Chip Packaging

The latest report from DIGITIMES Asia reveals a promising outlook for the global data center AI chip market, expecting shipments to surge from 30.5 million units in 2024 to an impressive 53.4 million units by 2030. This segment covers a variety of chips including high-end and mid-range GPUs, application-specific AI chips like Google’s TPUs, AI server CPUs, and specialized networking components, such as interconnect chips.

Projections and Market Dynamics

According to the data, application-specific AI chips and mid-range GPUs utilizing GDDR DRAM are forecasted to be the fastest-growing segments in terms of shipment volume. While high-end GPUs and AI server CPUs are projected to grow at a Compound Annual Growth Rate (CAGR) of about 10%, their revenue growth will outpace this, fueled by increased chip value and advanced packaging techniques. AMD has projected that the TAM CAGR for global server CPU revenue will hit 18% between 2025 and 2030. This is attributed to rising core counts and the adoption of sophisticated technologies in processes and packaging.

For GPUs, despite a modest growth rate in shipments, revenue from wafer foundry and packaging is expected to see CAGRs exceeding 40% from 2024 to 2030 due to enhancing die count trends per chip.

Focus on GPU-centric Revenue

In an environment where AI server CPUs and AI networking chips maintain high shipment volumes, the revenue stemming from AI chip packaging will predominantly stay centered on GPUs. By 2030, the revenue generated by data center GPU packaging is anticipated to be over 40% higher than that from application-specific AI chips. This underscores the position of GPUs in the high-end packaging market, even as new entrants like Google's TPUs and AWS's Trainium exhibit remarkable energy efficiency.

Fast-Paced Growth of Advanced Packaging

DIGITIMES forecasts indicate that the global market for advanced packaging of data center AI chips will expand from $5.6 billion in 2024 to $53.1 billion by 2030, showing a significant CAGR of over 40%. This coincides with AMD's evaluation, which estimates the TAM for data centers to also exceed 40% growth over the next five years.

Major Growth Drivers

1. AI Boom: The escalating demand for AI capabilities is forcing significant investments from tech giants.
2. Advanced Packaging: Innovation in packaging is essential for maximizing chip capabilities and ensuring compliance with Moore’s Law.
3. Geopolitical Factors: The competitive landscape between the U.S. and China, along with the emergence of Sovereign AI initiatives, is a significant factor driving demand.

Key Challenges

1. ROI Re-evaluation: Companies are reassessing the ROI from hefty investments in computational power.
2. Emerging Technologies: The rise of more efficient and cost-effective technologies poses a potential challenge.

Conclusion

The future of data center AI chip packaging is poised for dynamic transformation. As the landscape evolves, entities within the sector must strategize effectively to capitalize on growth opportunities while navigating inherent challenges. The convergence of advanced technology, increased demand for AI capabilities, and competitive market factors will likely steer the direction for AI chip packaging in the years to come.