Core Viewpoint - The article discusses the emerging trend of ASIC (Application-Specific Integrated Circuit) chips in the AI chip market, highlighting NVIDIA's introduction of NVLink Fusion and the competitive landscape between NVIDIA and the UALink alliance [1][3][4]. Group 1: NVIDIA's Position and Strategy - NVIDIA has entered the ASIC market with NVLink Fusion, allowing various processors from companies like MediaTek and Qualcomm to connect to NVIDIA's AI data centers [1]. - NVIDIA's CEO Jensen Huang stated that 90% of ASIC projects are likely to fail, emphasizing the competitive edge of NVIDIA's ASICs over others [3]. - NVIDIA's gross margin remains high at 60%, indicating strong profitability and competitive positioning in the ASIC market [4]. Group 2: Market Growth and Future Projections - The market for cloud-based ASIC chips is projected to exceed $40 billion by 2028, as noted by MediaTek's chairman [3]. - Major cloud service providers are developing their own ASIC chips to create a competitive advantage, with companies like Google, Microsoft, Meta, AWS, and Apple actively involved in this trend [6]. Group 3: Competitive Landscape - The UALink alliance, which includes major companies like Alibaba, AWS, AMD, Apple, Cisco, Google, HPE, Meta, Intel, Microsoft, and Synopsys, is positioning itself against NVIDIA by promoting an open standard for AI chip interconnects [4]. - The competition between NVIDIA's NVLink and UALink is creating two distinct ecosystems in the cloud ASIC chip market [4]. Group 4: Supply Chain and Development - The development of ASIC chips heavily relies on the Taiwanese semiconductor supply chain, with companies like TSMC and others involved in the production process [7]. - The number of AI ASIC servers is expected to surpass 50% of the overall market by 2028, indicating a significant shift towards ASIC technology in AI applications [7].