Demand for AI chips should spur growth for the semiconductor industry over the next few years, the CEO of a major supplier to Taiwan Semiconductor Manufacturing Company said, dismissing concerns that investors had misjudged the pace and extent of spending on artificial intelligence.

While the global chip market has grown about 8 per cent annually over the past 20 years, AI semiconductors should grow at a much higher rate going forward, Scientech chief executive officer Hsu Ming-chi told Bloomberg Television.

"This booming of the AI industry has just begun," Hsu said. “For the most prominent company, the equipment we sold to them probably increased two to three times in a year."

The CEO's comments came after Nvidia reported earnings that failed to meet investors' loftiest expectations. Analysts also issued fresh warnings that AI's promise of rewiring global economies is thus far unproven. Nvidia's shares tumbled 9.5 per cent on September 3, wiping out US$278.9 billion in the biggest loss of value ever for a US stock.

Still, Hsu expects his company will see quarterly sales grow sequentially during the second half of 2024. He expressed his confidence in the launch of many AI applications in the future.

Taipei-based Scientech makes equipment used in TSMC's exclusive packaging technology, called Chip-on-Wafer-on-Substrate. That's in turn employed to make AI chips for the likes of Nvidia. In May, TSMC senior vice-president Kevin Zhang said his company makes 99 per cent of the world's AI accelerators. Scientech's share price has gained close to 80 per cent since the beginning of 2024.