Astera Labs expects its Scorpio switch-chip business to become its largest revenue contributor by the end of 2026, marking a shift for the cloud AI connectivity chip supplier as demand grows for scale-up infrastructure in AI clusters.

While marketing initiatives promote an ultra-fast transition to wide-bandgap (WBG) semiconductors, fully automated smart factories, and an all-electric automotive future, the sentiment across the PCIM Europe 2026 exhibition floor is more pragmatic. The industry has reached a transitional maturity wall where the realities of material physics, fragmented design silos, and macroeconomic supply shocks are clashing with marketing hype cycles.