At the 23rd Global Views Summit held in Taipei on November 5-6, 2025, Chiang Shang-yi, a director at Hon Hai Technology Group (Foxconn), shared insights on the future of semiconductors in the AI era.

Chiang emphasized that AI is the new driving force behind semiconductor advancements. Each technological wave—from mainframes and personal computers to smartphones and now AI—has redefined the implications of Moore's Law. Unlike previous waves, which were driven by single-product ecosystems with massive but concentrated demand, AI is still in its infrastructure phase, primarily centered on data centers. However, this is just the beginning.

Chiang predicted that AI development will soon transition to the application phase, moving from cloud computing to edge computing (or AIoT—AI-powered Internet of Things). This shift will introduce thousands of diverse applications, including smart vehicles, robotics, smart homes, and smart cities. Such diversification poses unprecedented challenges for semiconductor design and manufacturing.

He noted that traditional chip design economies of scale may no longer apply due to the fragmented nature of AI applications. For instance, cutting-edge processes like TSMC's sub-5nm technology require design costs of around $2 billion. If a design firm invests $200 million upfront, it becomes unviable unless product sales exceed $1 billion.

To address this, Chiang highlighted "Chiplet" as a critical solution. The Chiplet approach, akin to modular building blocks, allows high-performance computing modules to be reused across different products, reducing development costs and enhancing market adaptability—making it a foundational architecture for the AI era.

However, with Moore's Law nearing its physical limits, Chiang warned that even Taiwan's leadership in wafer foundry and packaging/testing could face challenges. "The next breakthrough may not lie in process technology but in advanced packaging," he stated.

Advanced packaging technologies like CoWoS and InFO, once seen as cost-control measures, are now pivotal in improving chip integration efficiency. Beyond maintaining semiconductor and packaging leadership, Chiang stressed the growing importance of "system design" as the ultimate driver of industry evolution, as system designers will shape future developments.