During the 26th China International Industry Expo held in Shanghai, AMEC Chairman and General Manager Gerald Yin addressed the current state of the semiconductor and AI sectors. He cautioned that the AI industry may be approaching a bubble, urging stakeholders to remain vigilant regarding market developments.
Yin highlighted the historical volatility of global semiconductor capital expenditure, citing data from 1984 to 2026. He noted that annual capital spending in the industry has experienced extreme fluctuations, ranging from 100 percent growth to 30 percent declines. He emphasized the necessity for companies to prepare for these cyclical shifts.
Concerns regarding the AI market are also gaining traction internationally. In August, European regulators and major banking institutions indicated that a potential correction in the AI sector is likely. They warned that such a market adjustment could have a global impact, affecting all regions and participants involved in the current expansion of AI data centers.
