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Singapore factory output rises in June driven by AI demand

Published July 27, 2026 at 8:02 AM UTC

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Singapore's factory output rose in June, continuing a recent trend of growth powered by strong demand for artificial intelligence-related components. Data released by the Economic Development Board showed that manufacturing production climbed 7.2% year-on-year in June, though the figure fell short of economists' forecasts of a 10% expansion. The electronics sector, which makes up a significant portion of the country's manufacturing base, led the increase with a surge in output of semiconductors and other AI-related chips. This growth reflects the global race to develop and deploy AI technologies, which has boosted demand for Singapore's advanced manufacturing capabilities. However, the miss on expectations suggests that the recovery may face headwinds, such as a slower-than-expected rebound in global demand for consumer electronics. The non-electronics sectors, including chemicals and biomedical manufacturing, showed mixed results, indicating that the broader recovery remains uneven. The data underscores the importance of the AI boom to Singapore's economy, but also highlights vulnerabilities tied to the cyclical nature of the tech industry.