Singapore to benefit from upturn in global semiconductor cycle

A SIGNIFICANT portion of Singapore’s economic growth stems from exports, with a notable focus on electronics. This underscores the importance of closely examining its manufacturing sector, particularly the semiconductor industry.

We anticipate a pivotal moment in the global semiconductor landscape – we project a 40 per cent year-on-year growth in chip sales by the second quarter of 2025. This forecast is underpinned by the expectation that chipmakers will experience a structural surge in demand as the world becomes increasingly digitalised, potentially resulting in increased semiconductor applications and higher silicon content.

Despite the prevailing sales downturn, we anticipate that adjustments in production levels, government incentives and base effects will contribute to heightened future sales growth. These factors are further boosted by the adoption of artificial intelligence (AI).