AI chips are pulling silicon capacity away from phones and PCs, Siltronic says

Silicon-wafer maker Siltronic raised its annual sales forecast for the second time in 2026. CEO Michael Heckmeier told Reuters that chipmakers are directing capacity to the customers and segments able to pay the most, with hyperscalers driving the strongest demand.

Heckmeier estimated that AI server farms use roughly three to four times as much silicon area as traditional servers. He added that if AI demand eventually moderated, capacity could flow back to smartphones, PCs and other markets where underlying demand remains.