Nvidia, the dominant force in AI and GPU technologies, is making strategic moves into the Application-Specific Integrated Circuit (ASIC) market by establishing a new dedicated department and actively recruiting talent, according to Taiwan's Commercial Times.
The company's expansion comes as the AI semiconductor landscape evolves beyond traditional GPUs toward specialized inference chips. While Nvidia's H series GPUs have been the go-to choice for AI model training, the market is increasingly demanding chips optimized for real-world AI applications and inference tasks.
Market projections highlight the growing importance of inference chips, with the sector expected to expand from $15.8 billion in 2023 to $90.6 billion by 2030, according to Verified Market Research.
The shift has attracted major players like Broadcom and Marvell, who are partnering with cloud service providers to develop specialized data center chips. Google has already entered the space with its custom ASIC design "Trillium," released in December 2024.
In response to this competitive landscape, Nvidia CEO Jensen Huang announced plans to hire 1,000 engineers in Taiwan in 2024. The company's new ASIC department is specifically targeting talent from established local companies like MediaTek to strengthen its position in the evolving AI chip market.
This strategic pivot demonstrates Nvidia's recognition that maintaining market leadership in the AI semiconductor space requires diversifying beyond its traditional GPU stronghold. As the industry moves toward more specialized AI processing solutions, Nvidia's expansion into ASICs represents a proactive step to maintain its competitive edge.