The Japanese company Advantest said that the increased demand for high-bandwidth memory (HBM) used for artificial intelligence (AI) operations is driving growth in its memory tester business.
Advantest (6857.T), a Japanese company, announced on Wednesday that its memory tester business is growing due to the increasing demand for high-bandwidth memory (HBM) utilized for artificial intelligence (AI) operations. In order to save space and lower power consumption, high-bandwidth memory, or HBM, is utilized to process the massive amounts of data required for artificial intelligence operations. CEO Douglas Lefever stated in an interview that HBM currently accounts for about 50% of the company’s memory testing revenue, and that percentage is expected to rise in the near future.
Since HBM was first developed in 2013, Advantest, a manufacturer of chip testing equipment, has collaborated with the company and is taking advantage of its connections to memory manufacturers, according to Lefever. The equipment manufacturer increased its market share of memory testers in the fiscal year that concluded in March, and it anticipates a 47% increase in memory section sales annually. AI and the desire to boost chip speed are resulting in more intricate component combinations that need to be thoroughly tested to ensure functionality.
“Advantest will be driven by the cloud and data center, but the real game-changer will be when those edge applications launch,” stated Lefever, who assumed his position in April. The term “edge AI” describes the use of local devices for AI tasks as opposed to centralized data centers. The electronics sector anticipates that the adoption of AI features will encourage customers to upgrade their gadgets, as the market for smartphones, tablets, and PCs has been negatively impacted.
Due to their increased complexity, these new gadgets will have a lot of test content when they are released, according to Lefever.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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