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Japan’s Advantest sees AI driving demand for chip testing

On Wednesday, Japan’s Advantest Corporation announced that it expects rapid use of advanced semiconductors for generative artificial intelligence (AI) applications to carry on demand for its chip testing machinery.

“We can expect rapid growth in demand. However, we still don’t have concrete visibility,” Advantest CEO Yoshiaki Yoshida told an earnings briefing.

Source: theprint.in
Advantest
Image Source: japantimes.co.jp

As the world’s interest is grabbed by the potential of ChatGPT and other solutions designed at bringing web services more sophisticated and human-like Advantest stocks have soared 36 percent this year, nearing all-time highs. The corporation anticipates that operational profit would increase by 48 percent to 170 billion dollars in the financial year that ended in March.

The industry is expected to decrease this year as a result of clients hoarding surplus inventory, according to Advantest, a global leader in chip testing machinery together with Teradyne Inc. of the United States.

“Despite the fall this year I believe we will eventually face a growth curve,” Yoshida said. Advantest shares have more than doubled in value since the start of the year.

Source: theprint.in

Microsoft, as well as Alphabet’s child company Google, are one of the first to include generative artificial intelligence into their online tools, but a competing race to establish a dominating artificial intelligence platform in the world’s biggest internet marketplace has begun in China, driven by SenseTime, Alibaba Group Holding, Group, as well as Baidu.

Also Read: Intel, Ericsson to work together on custom 5G chip

Data centers are necessary for managing and developing artificial intelligence models that power anything from smart chatbot assistants to self-driving cars. The best hardware at the moment for real-time data analysis is numerous thousands of graphics processors, which are needed to do it.

According to Bloomberg Intelligence analyst Masahiro Wakasugi, the expanding usage of AI is straining the capabilities of sophisticated packaging and chip miniaturization, increasing the possibility of production errors.

Chip tester requirement is significantly increased as a result, enabling producers to ensure product quality and performance.

Teradyne, a competing company established in North Reading, Massachusetts, is rivaling Advantest. When a client switches vendors, which is exceedingly uncommon because it requires rethinking more machinery or whole lines of production, as well as retraining people, switching testing instruments might result in an important change in market share between the two.

In a couple of years, outstanding performance Graphics Processing Unit chip testers’ global sales would probably surpass those of smartphone chip testers, according to Toyo Securities analyst Hideki Yasuda.

Advantest

Advantest- The firm that turned helpful in shaping the future of Japan’s nascent semiconductor industry.

Semiconductors are available on earth in more than enough quantity. However, these are the core component used in a variety of electronic devices. Like smartphones, PCs, electrical household appliances. As well as constitute the parts of automobiles and many other devices. These all devices, in fact, are indispensable to the lives of people. Thus the semiconductors used in such devices must be high in quality, and performance. Many firms are working in this field, and Advantest is one of the names dominating the field. In the semiconductor industry, technology updates alter every single day. While Advantest has always been delivering the product and solutions as per this changing technology.

It is well-known for bestowing to remarkable efficiency in production in the electronics industry. As well, secure and easier the lives of people through its innovative products.

About Advantest

It is a well-known semiconductor firm based in Japan. Manufactures semiconductor products, component test system products, and mechatronics-related products. It is headquartered in Tokyo in Japan. The firm also sells the used electronics components and products through exhibitions. Also, leased the products for commercial use. Additionally, the firm is active in research and development, measuring, and testing technologies.

Network of Advantest

The firm offers it’s services and products to foundries, semiconductor firms, and other firms in the manufacturing industry. It has built a strong network in Japan. As well as covers the other Asian regions, Europe, America, and other parts of the continents.

The backstory of Advantest

Back in 1954, Ikuo Takeda builds the foundation of Advantest as Takeda Riken Industries. Sooner or later, the firm shifted to Oyaguchi-Cho in Itabashi Ward, later on shifting again in Tokyo’s Nerima Ward. In 1957, Advantest release the first product for current measurement. It was Micro Ammeter. One more milestone of Advantest, that time Takeda Riken is the first-ever electronic counter made in Japan.

Advantest
Image Source: digitimes.com

The TR-124B counter helped in exploring the business for the firm and gave it fame as the digital counter company. As well, marked the beginning of innovative products in the companies history. Thereafter, Advantest released many electronics components that were made in Japan for the first time. Such as vibrating capacitance ultra-low-current electrometer, digital voltmeter, etc. The firm touched the new level when it introduced the TR-3189 105 MHz electronic counter, the highest-performance product in the world. Soon this product popular all over the world; in 1962, selected as one of the Nikkan Kogyo Shimbun’s “Top 10 New Products”.

Services and products

To verify the quality, reliability, and performance of the semiconductors that will be used in electronic components, Advantest has Automated Testing Equipment/ATE. With this electrical test, the complex and defects in semiconductors can be detected with great accuracy. It also enabled another method for semiconductor testing i.e. using peripheral devices. Advantest has also been active in Nanotechnology Business, Field services, SLT business, and many other related businesses.

Apart from that, the firm also conducts the sale of use semiconductors, commercial mechatronic products, component test systems. As well, it is active in the device leasing business.

Exploring the business

Starting from its establishment, Advantest used cut edge technology. It developed products that reflect the innovative nature of the firm. In 1980, it released the first tester made in Japan. Thereafter, it launched a memory system having a capacity of 20MHz.

During the 1980s, Advantest’s T-3300 series remarked as one of the Nikkan Kogyo Shimbun’s “Top 10 New Products”. Moreover, the firm produced an intelligent spectrum analyzer of series TR-4172. Because of its multifunction features, it became popular among communications equipment manufacturers. To explore the business furthermore, Advantest acquired Astronics Corporation in 2019. It was working in the field of semiconductor system-level test business. As well as it captured Essai, Inc in 2020, so that it can enable high-precision test solutions than earlier.

Recognition and Awards

Advantest has been selected for FTSE Blossom Japan Index and FTSE4Good Index. The first index measures the performance in environmental practices, and the second one is related to CSR. It is also honored as a 5-Star Company. Also, marked its name in 10 BEST List in VLSIresearch Customer Satisfaction Survey. Not for the first time but for the 31st Consecutive Year.

Yoshiaki Yoshida- CEO

He is serving as CEO at Advantest since 2017. Yoshiaki has been working with the firm for a long time. In fact, he joined the company in 1999.