Generative Artificial Intelligence (AI) is defined as “algorithms that are used to generate new content such as text, audio, video, animation, or even DNA, through its exposure in huge amounts of data to locate or link patterns and relationships²”. As semiconductor products that offer machine learning and similar algorithms, most of these highly valuable chipsets are located in data centers, driving processes through the hardware that consists mainly of CPUs and GPUs in special packaging.

"As more sophisticated equipment is needed within the Semiconductor value chain to manufacture these chips, with our internal analysis, we would estimate about USD4 billion worth of assets to be added in CAPEX globally till year 2027 to support the growth of Generative AI", opined Boon Hong Lee, Strategic Marketing Manager in LAPP Asia Pacific, who added that investments are surely required to ensure the sustainability in the production processes, especially within the back-end manufacturing.

Taking the variability out of manufacturing by providing the right information at the right time, Internet-of-Things (IoT), machine learning and robotics are concepts that have been used by wafer fabs, IDMs and OSATs to improve quality and increase vital production output.

"Smart Manufacturing", a key phrase refers here to the evolving landscape of the manufacturing technologies, as game-changing Generative AI enters the fray. Process engineers would now be able to generate more accurate sets of new settings for their machines to invoke smarter self-diagnostics and predictive maintenance of the equipment, while semiconductor facilities explore areas such as facility management and energy efficiency, to reduce overall costs of running the plants.