ITG NowHome › AI glossary › Semiconductor
What is a semiconductor?
A semiconductor is a material that can switch electricity on and off, and it is what computer chips are made from.
- Category Hardware
- Also called chipmaker, chip maker
- Updated 20 Oct 2026
Semiconductor, explained simply
A semiconductor is a material, often silicon, that sits between a metal and an insulator. It can be switched between conducting and not conducting.
Tiny switches made from it, called transistors, are the building blocks of chips. A modern chip has billions of them.
People also use the word for the companies that design or make chips. Those are called chipmakers.
On ITG Now, our daily AI news stories sometimes cover chipmakers because AI needs so many chips.
Related terms
AI chipGPUCPUData centerCompute
Where you'll see it on ITG Now
- AI newsByteDance, Alibaba, Tencent order $35B of Nvidia chips
- AI newsChip startup Tenstorrent raises $1.5B at $6.2B value
- AI newsSamsung reportedly will use TSMC for Nvidia memory chips
Questions people ask about Semiconductor
Is a semiconductor the same as a chip?
Not exactly. A semiconductor is the material. A chip is a finished device made from it.
Why do semiconductors matter for AI?
AI runs on chips, and chips are made from semiconductors. So chip supply affects how fast AI can grow.
What is a chipmaker?
It is a company that designs chips, makes them, or both. Some companies only design, and others only build.