Power Emerges as Key Bottleneck for AI, Driving Global Semiconductor Collaboration

As the semiconductor market accelerates toward an estimated US$1.3 trillion valuation by 2030, industry leaders are converging on a shared vision. AI is ushering in an era of unprecedented growth and technological transformation.

At the CEO Summit 2025, organized by SEMI, thought leaders from Infineon, NXP, Google,DENSO , Tenstorrent, and ASE gathered to discuss the critical role of power in enabling AI, the opportunities and challenges semiconductors bring across applications—from data centers to edge computing—and the importance of global collaboration across the ecosystem.

In their inaugural speeches in Taiwan, the CEOs of Infineon and NXP delivered a unified message on the future of AI. Both leaders underscored a critical and often overlooked point: power is the foundational element driving the next wave of AI computing performance. Their presence also underscored Taiwan’s strategic importance within the global technology ecosystem.

Infineon Technologies CEO Jochen Hanebeck highlighted that AI’s power demand is becoming a fundamental bottleneck. Without sufficient power, the challenge extends beyond generation to the infrastructure needed to deliver electricity from the grid to the processing core. Ultimately, he warned, society may be unable to enjoy the full convenience and progress AI promises.

NXP Semiconductors CEO Kurt Sievers echoed this sentiment, emphasizing that AI’s power demands extend well beyond data centers into "physical AI" applications such as autonomous vehicles and humanoid robots. This shift, he explained, is fueling rapid growth in edge AI. When AI interacts with the physical world, factors such as bandwidth, energy efficiency, latency, and trust become paramount. Consequently, these complex systems require advanced architectures with sophisticated power management for critical functions such as motor control and sensor integration.

Sievers further elaborated on this concept, referring to it as "attending A", which he believes will enable truly autonomous machines. He stressed the industry’s immense responsibility to ensure these technologies are developed responsibly for the benefit of humanity, remarking: "We all share quite some responsibility to do this right for the better of humankind." He explained that intelligent systems consist of multiple "agents" that must be carefully orchestrated and enabled to work in harmony.

Dr. Hirotsugu Takeuchi, CTO of DENSO , shared insights on how semiconductors are transforming mobility. He outlined the requirements of automotive applications and the need for new SoCs to power the rise of Software-Defined Vehicles (SDVs). He pointed to the breakthrough of SiC technology as a key enabler of a sustainable, carbon-neutral society. Takeuchi emphasized that semiconductors will drive safer, more comfortable mobility and that collaboration with Taiwan and the broader global network will be essential to the future of the automotive industry.

Rehan Sheikh, Vice President of Global Silicon Chip Technology & Manufacturing at Google Cloud, noted that demand for AI compute is growing exponentially. He highlighted that AI inference volume doubled in the past year, with Google’s internal data showing a 50-fold increase in monthly processed tokens across its services. Sheikh introduced Google’s latest TPU, Ironwood—a powerful, energy-efficient chip specifically designed for large-scale inference workloads. It represents Google’s first TPU purpose-built to balance high performance with power efficiency in meeting the demands of the AI boom.

Jim Keller, veteran chip architect and CEO of Tenstorrent, emphasized his mission to champion open-source architectures and foster a spirit of global collaboration at a time when AI computing is becoming increasingly complex and costly. Keller explained that Tenstorrent aims to democratize high-end AI computing, making it more accessible, faster, and more open. The company’s strategy rests on three pillars: RISC-V, OpenAI, and a unified software stack. At the heart of this approach is a commitment to open standards and collaborative development, challenging the industry's traditionally closed ecosystems.

During the fireside chat, speakers reflected on Taiwan's evolving role in the global semiconductor landscape. Long established as a manufacturing hub for logic chips, Taiwan is now emerging as the ideal platform for integrating diverse technologies and solving system-level challenges, thanks to its mature ecosystem, advanced packaging capabilities, and open-minded approach. Executives from Infineon, NXP, and Tenstorrent all stressed that no single company or region can address these challenges alone. The future of the industry, they agreed, depends on deep cooperation across sectors and geographies, combining expertise in areas ranging from high-performance computing to power and sensing technologies.

In closing, ASE CEO Dr. Tien Wu referenced A Chip Odyssey, Taiwan’s first documentary film spotlighting its globally leading semiconductor industry. He described the film as a powerful reminder to both senior leaders and younger generations to maintain confidence in the steady progress of semiconductor development.

The film chronicles Taiwan’s journey from humble beginnings to its emergence as a critical player in the global industry. Dr. Wu shared that he was deeply moved by the story of two generations of talent—each bringing vision, diligence, and leadership—who together created a lasting legacy. He extended this reflection beyond Taiwan, noting that the United States, Japan, Korea, and Europe have each experienced their own “chip odysseys.” This, he emphasized, illustrates that Taiwan's story is part of a larger global network of interdependence, where collective collaboration produces outcomes greater than the sum of individual contributions.