AMEC Chairman Yin Zhiyao Warns of a Possible AI Bubble

The 26th China International Industry Fair opened in Shanghai. At an integrated circuit forum held that afternoon, Yin Zhiyao, chairman of chip equipment maker AMEC, shared his views on AI and gave a clear warning.

He said almost every event now talks about AI, but AI could face a bubble, so the industry should stay alert. He looked back at global semiconductor capital spending from 1984 to 2026. Spending once jumped 100% in a year, but also dropped 30% or fell for years in a row. He believes such cycles will return, and companies need to be ready.

He is not alone. In August, as US companies poured huge speculative money into AI data centers, European regulators began to weigh a possible AI bubble burst. Major European banks said a market correction is likely, and it could hit every region and every person.