# AI boom draws chip supply from other end-markets, Siltronic CEO says

- URL: https://talkfuse.com/story/ai-boom-draws-chip-supply-from-other-end-markets-siltronic-ceo-says/
- Published: 2026-11-04T16:12:03+00:00
- Updated: 2026-11-05T08:06:19+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/ai-boom-draws-chip-supply-other-end-markets-siltronic-ceo-says-6524926
- Topics: AI, Business, Companies, Markets, Technology, World

## Key points

- AI demand is drawing chip supply away from smartphones and PCs.
- AI server farms use three to four times more silicon area than traditional servers.
- Siltronic raised its annual sales forecast for the second time this year.

## Summary

The AI boom is drawing chip supply towards data centres and away from smartphones, PCs and other markets, Siltronic chief executive Michael Heckmeier said. He argued that this reallocation is creating weakness in some areas, even as AI demand drives the industry’s growth.

Siltronic, which makes silicon wafers for semiconductors, raised its annual sales forecast for the second time this year, citing stronger wafer demand. Heckmeier said AI server farms use roughly three to four times more silicon area than traditional servers, while chipmakers favour the highest-paying customers, including large cloud computing firms. He said any future easing in AI demand could free capacity for other markets, where underlying demand remains solid, but that no slowdown is currently evident.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.