Business group says chip demand remains strong amid geopolitical situation

Kuala Lumpur - The recent surge in semiconductor demand is expected to continue despite supply chain disruptions caused by the Middle East crisis and various other trade uncertainties, according to an industry group.

Global semiconductor sales are projected to reach $1 trillion this year (1 USD = Rp17,425), and to double to $2 trillion by 2035, driven by the rapid growth of data centres used to support artificial intelligence (AI) technology, said Ajit Manocha, CEO of the global chip industry group SEMI, on the sidelines of the SEMICON Southeast Asia 2026 event in Kuala Lumpur on Tuesday (5/5).

Ajit considers the risks arising from geopolitical tensions to be not too significant, which he believes are unlikely to hinder this year’s rapid growth, although persistent shortages of raw materials could affect long-term prospects.