Chips power the world – wider AI adoption requires breakthroughs in semiconductor research

A mobile phone contains approximately 30 semiconductor chips, while a hybrid car may incorporate as many as 3,500. 

Timo Hämäläinen, Professor of Computer Engineering and Head of the System-on-Chip (SoC) Hub at Tampere University, points out that modern society would not exist without chips.

“Chips are what keep our world running. All intelligence and functions are controlled by chips,” he says. 

Until now, progress in the development of silicon-based microchips and system-on-chips has relied on the relentless miniaturisation of their components. A single chip, no larger than a fingernail, can contain tens of billions of transistors, each roughly the thickness of only tens of atoms. Manufacturing such devices is extraordinarily complex and costly. 

At the same time, the power consumption of chips has increased to the extent that the energy demand of data centres already rivals that of a small town. In 2030, chips that power AI are estimated to consume close to 1,000 terawatt-hours of energy, which is on par with the annual energy consumption of Japan.

Further improvements in the performance of semiconductor chips will therefore require new materials and advances in chip design.

“New breakthroughs in chip research are needed to make real-time AI applications that genuinely improve everyday life a reality,” says Pauli Kuosmanen, Director of Research and Innovation Services at Tampere University.

Finland has expertise and strengths in the semiconductor sector

Although chips are vital for modern society, Europe is far from self-sufficient in their production.

The European Union has recognised this challenge and introduced the EU Chips Act, which supports and promotes chip research and manufacturing across Europe. The Act aims to strengthen the competitiveness of European companies in the semiconductor sector and reduce dependence on other regions, such as Asia.

Matti Mäntysalo, Professor of Electronics at Tampere University, notes that Finland is a highly active player in the semiconductor sector for a country of its size.

“Finland has advanced expertise in this field, but our semiconductor workforce is relatively small compared with countries such as China or South Korea. We must therefore focus on carefully selected areas where we can further develop our strengths and offer distinctive expertise,” says Mäntysalo. 

According to Pauli Kuosmanen, Finland and Tampere have made a sound choice by concentrating on the most demanding areas of chip development.