AI demand drives chip equipment sales forecast to new highs but tariff jitters cloud outlook
Singapore-listed Frencken and GVT are riding the chip boom, but these smaller firms could be vulnerable to supply chain shocks and policy shifts
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[SINGAPORE] Fuelled by the explosive demand for artificial intelligence (AI), global semiconductor manufacturing is poised for growth, with equipment sales projected to hit a record US$121 billion this year – surpassing last year’s high – even as geopolitical tensions loom large.
While high-end AI models continue to push demand for more powerful and efficient chips, there is also growing interest in low-power AI semiconductors from global firms looking to integrate AI into everyday operations, said Alvin Nguyen, senior analyst at Forrester.
“Generative AI is an obvious driver of semiconductor growth,” he noted, adding that demand is also rising for chips used in Internet of Things (IoT) and edge computing devices.
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