Huang Renxun: The Chip Industry Will Not Experience a Downturn for Some Time, Scale Needs to Increase Five to Tenfold

BlockBeats News, July 24th — NVIDIA CEO Jensen Huang and AXIOS co-founder Mike Allen engaged in a wide-ranging and in-depth discussion on the current state of artificial intelligence. Huang stated that despite the semiconductor industry's long history of boom and bust cycles, "this time is different." Even considering the industry's highly cyclical nature throughout history, the current prosperity still has room to continue growing.

When asked if the industry is about to experience a downturn, Huang replied, "No, it will not happen in the near future. This time is different because it is not demand-driven. Consumer demand has always been the main driving force of this industry. The current AI boom is industry-driven, meaning the core technology of computing is changing."

"We need to establish a brand-new infrastructure layer globally. We already have energy, the internet, roads, and railways, and now we need to build this intelligent layer of artificial intelligence, which is another layer of infrastructure on top of these basics. And this layer of infrastructure depends on chips. I think our semiconductor industry may need to be five to ten times larger than it is now... the industry is currently too small. Everything is in extreme shortage because this is not a cyclical issue or due to consumer demand; it is a fundamental, infrastructure-related factor."