Monthly Market Insights - November 2025 - Flipbook - Page 8
Market updates
AI Boom Powers Semiconductor Surge, But Cycle
Risks Loom
The global semiconductor industry entered Q4
2025 on a strong upswing, driven by record AI
infrastructure demand, high-bandwidth memory
growth, and robust chip equipment orders from firms
like TSMC and ASML. According to the Semiconductor
Industry Association (SIA), worldwide sales are
projected to reach around US $700 billion in 2025,
marking double-digit year-on-year growth. Based
on recent reports from Reuters and the Wall Street
Journal, this surge is being fuelled by strong AI server
demand and expanding data-centre investments.
Governments are also intensifying reshoring efforts
through incentive programs, further boosting
capacity expansion. However, analysts warn that
the AI-driven boom may peak soon, with potential
oversupply and cyclical cooling expected in
2026, even as long-term innovation and regional
diversification continue to sustain optimism.
Electronics Sector Accelerates with Smart,
Connected Innovation
The global electronics industry is gaining momentum
in late 2025, with output projected to grow about 8%
year-on-year to nearly US $4 trillion, according to
the Japan Electronics and Information Technology
Industries Association (JEITA). Based on reports from
the HKTDC and AE Digital, growth is being fuelled by
strong demand for smart home devices, wearables,
automotive electronics, and AI-driven systems.
Companies are also capitalizing on expanding 5G
infrastructure and energy-efficient technologies that
enhance device performance. While firms continue
to adapt to evolving trade dynamics and component
sourcing, the sector’s innovation-driven expansion
signals a solid path toward sustained digital and
connected growth through 2026.
Typhoons Test Semiconductor Supply Chain
Resilience Across Asia
In October 2025, a series of powerful typhoons notably Matmo and Fengshen - highlighted the
semiconductor industry’s ongoing vulnerability to
climate-related disruption. According to Reuters
(2025) and regional logistics reports, heavy rainfall
and port closures across the Philippines, Hong
Kong and southern China disrupted supply routes
and delayed shipments of key semiconductor
materials and substrates. Temporary shutdowns
in Shenzhen and Cavite - both critical hubs for
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