Qualcomm (QCOM, Financial) CEO Cristiano Amon has stated that the current surge in artificial intelligence (AI) demand will not lead to a repeat of the global chip shortages seen during the COVID-19 pandemic, even as demand for AI-enabled smartphones increases. Amon clarified that the pandemic period saw a spike in consumer electronics purchases, which strained the supply chain. Since then, substantial investments have been made to boost chip production capacity.
Amon emphasized that the semiconductor industry has now reached a perfect balance between supply and demand. In response to past shortages, governments worldwide have been investing in semiconductor production, offering subsidies to propel this crucial industry. Recently, Japan committed over $65 billion to support its semiconductor and AI sectors over the next decade, aligning with the efforts of the United States and European Union.
Qualcomm, the leading supplier of processors for smartphones, recently issued a positive sales outlook for the current quarter. The company anticipates continued growth in demand for smartphone processors as consumers upgrade to more advanced devices featuring AI capabilities. Amon highlighted that consumers seek better phones with each purchase, and AI-powered features are accelerating this trend.
