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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (23438)	2/26/2025 9:36:13 AM
From: Kirk ©	1 Recommendation Recommended By Return to Sender Respond to of 27133

Here it is. DeepSeek disrupts AI landscape, igniting edge computing, and memory demand, says Silicon Motion (SIMO) CEO Siu Han, Taipei; Levi Li, DIGITIMES Asia Wednesday 26 February 2025 DeepSeek's emergence is accelerating edge AI adoption, challenging the reliance on Nvidia's ecosystem. Silicon Motion CEO Wallace Kou sees its rise as a shift in AI development strategy. The growing adoption of small language models (SLMs) is also fueling demand in the memory sector, benefiting DRAM and NAND flash. NAND flash market recovery expected by mid-2025 . NAND manufacturers have cut production to manage weak demand, accelerating inventory reduction. With supply-demand conditions improving, the market is expected to rebound by June, potentially tightening in the second half of 2025. Shortages may emerge, setting up stronger growth in 2026. DeepSeek: catalyst for edge AI growth Kou calls DeepSeek a game-changer, accelerating edge AI adoption. Its affordability is fueling startup innovation and expanding AI applications. DeepSeek's US impact is minimal for now, but it is disrupting AI markets in China, Europe, and India. Its low cost and open-source model allow developers to refine and deploy SLMs more efficiently. Kou accentuates that DeepSeek's success isn't about funding—it delivers results. Implications for China's AI ecosystem DeepSeek is reshaping China's AI landscape, with the government recognizing private-sector innovation as key to competing with the US. This shift is driving industry-led growth. Chinese tech giants are adopting DeepSeek. Tencent has integrated it into WeChat, accelerating AI adoption and broadening China's AI ecosystem. China's AI robotics industry is booming, with Shenzhen and Hangzhou as key hubs. Lowering costs requires alternatives beyond US technology. As AI robots become more affordable, demand will rise across industries, with personal ownership increasing. AI robot adoption will surge, driving memory and storage demand and expanding market potential. DeepSeek's impact on Nvidia and memory demand . Some view DeepSeek as a short-term threat to Nvidia, but Kou expects AI applications to spread across high- and low-end segments. Large language models (LLMs) once required heavy cloud investments, but DeepSeek enables SLMs to run on lower-power hardware. Unlike cloud AI, edge AI doesn't need HBM—LPDDR5-powered devices will see rising demand, driving new consumer applications. Edge AI growth will increase data processing needs, driving storage demand in both cloud and edge applications. DeepSeek is set to boost the memory industry. NAND flash market outlook for 2025 . Kou projects NAND flash bit supply to rise 18–20% in 2025, with a slight 5% price dip in the first quarter. NAND manufacturers are maintaining price discipline, and adjusting supply to market conditions. Prices are expected to rebound by June, with possible shortages in the second half of 2025. NAND flash has a stronger outlook than DRAM. Chinese firms like ChangXin Memory Technologies (CXMT) are disrupting DDR4 and DDR3 pricing, but DDR5 and HBM prices are expected to stay stable. Market Demand Trends in 2025 . Industrial demand has been weak, but 2025 will see growth driven by control system upgrades. Consumer demand will follow, with China's smartphone market rebounding due to subsidies and new technologies. China's economy won't fully stabilize in 2025, but market demand should recover in the second half, albeit without major growth. Kou sees 2025 as the start of edge AI adoption, with emerging applications and PC demand driven by Microsoft's OS upgrades. By 2026, edge AI will take off, driving a major AI PC upgrade cycle. Article edited by Jack Wu digitimes.com