A new report released by the Compound Semiconductor Applications (CSA) Catapult highlights the critical role of advanced hardware in meeting the growing demands of artificial intelligence (AI) and positions the UK as a potential global leader in this technological transformation. 

With the global market for AI set to grow to over $1.5 trillion by 2030, the report outlines the significant upgrade in hardware capability needed to cope with AI technology's increased computational and energy demands.  The report states that the UK is well-positioned to lead the AI transformation through its recently published AI Opportunities Action Plan. But to realise this vision, it states that the UK must capitalise on its expertise in compound semiconductors. 

Compound semiconductors offer greater energy efficiency, faster data processing, and better reliability.   They are superior to traditional silicon semiconductors in areas such as power electronics, photonics, and radio frequency (RF)  communications, vital for infrastructure such as data centres that will underpin the AI revolution. 

As AI models grow and become more sophisticated, their power consumption also significantly increases. The data centres that power AI are already using 1% of global electricity—a figure that is expected to grow to 8% by 2030. Therefore, the need for a shift to faster and more efficient hardware is clear. 

Compound semiconductor-based photonic devices will also dramatically increase the speed at which computers process and transmit data, significantly reducing latency in AI applications.  

Meanwhile, radio frequency (RF) technologies leveraging compound semiconductors will improve the speed and efficiency of data transfer in AI applications, edge computing, and the Internet of Things (IoT), which is expected to connect over 32 billion devices worldwide by 2030.

“Silicon-based technologies are reaching their limits in terms of energy efficiency and performance. Compound semiconductors enable faster data processing, greater energy efficiency, and enhanced performance, making them essential for next-generation AI applications. 

“By leveraging the unique capabilities of compound semiconductors, the UK can build a future where AI not only drives economic growth but also delivers transformative benefits to society,” says Nick Singh, chief technology officer at CSA Catapult.

Click here to know more about the report.