SMIC: Rapid growth, slow planning

China's top chipmaker, SMIC, has expressed concerns about the rapid expansion of AI data center capacity. According to the company, the utilization of this growing capacity "has not been fully thought through."

This statement suggests that the actual demand for computing power for artificial intelligence may not keep pace with the rate at which new data centers are being built. This could lead to overcapacity and inefficient use of resources.

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Implications for the market

SMIC's warning may indicate a cooling of the Chinese AI data center market, or at least the need for more strategic investment planning. Companies will need to carefully assess their computing needs and ensure that capacity is actually being used.