Advantest Co-Chief Strategy Officer Yasuo Mihashi recently expressed how the spike in demand for its chip-testing devices is being catalyzed by the frenzy of interest revolving around the OpenAI’s ChatGPT, as well as other novel uses of artificial intelligence (AI). This demand is a result of the worldwide race to develop powerful computing clusters and next-generation AI training systems which seek to integrate generative AI in their web tools as seen with Microsoft Corp. and Google’s Alphabet Inc. In China, this is being led by Alibaba Group Holding Ltd., SenseTime Group Inc. and Baidu Inc.
In response to these advances, chipmakers such as NVIDIA Corp. and Advanced Micro Devices Inc., rely on Advantest as their main testing tools supplier. This has disproportionately benefitted Advantest this year, as its shares have surged a tremendous 36% and is approaching an all-time high in value. This goes to show that Advantest has proven to be an invaluable beneficiary from the rising use of AI, as they are the industry’s dominant player. This will surely gain more traction as consumers become more comfortable with the idea of AI in their lives, with it that promises to make internet services smarter and more human-like.
However, the US-led campaign to restrict trade of advanced semiconductors to China and muted demand for consumer electronics could be seen as threats to Advantest’s continued success. Japan also recently said it would expand export controls on its chip technology which is an obstacle that Advantest needs to clear in order to remain the leader of the testing tools industry.
Advantest is a Japanese company providing testing and measuring instruments that are used for semiconductor development, FPD and semiconductor production processes. It plays a significant role in today’s technology driven society as it’s highly-specialized products and comprehensive business system are essential in the development of chipset. It also plays a key part in any bid by China to build its own advanced chips, their testing tools remain not tied to a specific fabrication process.
Yasuo Mihashi is the Co-Chief Strategy Officer at Advantest. He is responsible for defining and executing the company’s business strategy and all aspects of corporate development. Mihashi has an extensive background of over 30 years in the semiconductor and software industries. Since joining Advantest, he has been an integral part of the team behind the gargantuan success Advantest has experienced, with the company expecting a 48% increase in operating profit by the end of the fiscal year.
