Monthly Market Insights - November 2025 - Flipbook - Page 9
“GLOBAL CHIP SALES ARE
EXPECTED TO CLOSE THE
YEAR NEAR US$700 BILLION”
electronics assembly and testing - led to short-term
slowdowns in exports bound for Japan, Europe and
North America. Based on findings from Munich Re
(2025), the storms also placed additional pressure on
insurance and freight capacity, prompting rerouting
of shipments through Singapore and Kaohsiung to
minimise delays.
Despite these interruptions, analysts noted that the
overall production impact remained contained,
driven by enhanced disaster-response coordination
and a more diversified manufacturing base
across Southeast Asia. However, the events reinforced
an emerging strategic imperative: as extreme
weather patterns intensify, supply-chain resilience,
redundancy and geographic diversification are
becoming as vital to semiconductor competitiveness
as technological innovation and capital efficiency.
Semiconductor Industry Heads into Year-End with
AI Momentum and Strategic Rebalancing
The semiconductor industry is expected to sustain
its upward trajectory through November and
December 2025, driven by persistent AI infrastructure
demand, expanding automotive electronics, and
accelerated investment in advanced packaging and
materials. According to Reuters (2025) and DIGITIMES
Asia (2025), foundries such as TSMC, Samsung,
and GlobalFoundries are maintaining strong
utilization rates, particularly in 3–5 nm nodes
and HBM (high-bandwidth memory) production.
Meanwhile, analog and power semiconductor
markets are stabilizing, supported by renewed
momentum in industrial automation and electric
vehicle supply chains.
Based on data from the Semiconductor Industry
Association (SIA, 2025), global chip sales are expected
to close the year near US$700 billion, reflecting
double-digit growth over 2024. Supply constraints are
gradually easing as new capacity in Japan, Southeast
Asia, and the U.S. comes online, though analysts warn
that AI-related components and advanced substrates
will remain tight through early 2026. The electronics
sector, in parallel, is forecast to see robust year-end
shipments of smart devices, automotive systems,
and energy-efficient solutions - signalling that while
the cycle is maturing, AI-driven innovation and
geopolitical diversification will continue to shape the
semiconductor ecosystem into 2026.
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