Energy-Efficient AI Inference at the Edge: Optimizing Semiconductor Hardware for Small Language Models

The rapid expansion of artificial intelligence applications across mobile devices, Internet of Things (IoT) platforms, and embedded systems has intensified the demand for efficient on-device inference. While large language models have demonstrated remarkable performance in natural language processing tasks, their computational and energy requirements make them impractical for deployment in resource-constrained edge environments. Small Language Models (SLMs) have therefore emerged as a promising alternative for enabling localized intelligence while maintaining manageable computational footprints. However, achieving efficient inference for these models remains dependent on the capabilities of underlying semiconductor hardware and the effectiveness of hardware-aware optimization strategies. This study examines the design considerations necessary for enabling energy-efficient inference of small language models on edge computing platforms. The paper analyzes how semiconductor-level architectural features such as neural processing units, specialized tensor accelerators, and optimized memory hierarchies influence inference latency and energy consumption. In addition, the work investigates model optimization techniques including low-precision quantization, parameter pruning, and hardware-aware scheduling that allow language models to operate efficiently on embedded processors and dedicated AI accelerators. A system-level framework is proposed that integrates semiconductor hardware capabilities with model compression techniques to improve inference efficiency without significantly degrading predictive performance.