AI-driven chip demand powers Singapore exports to record growth

Singapore recorded triple-digit growth in electronics exports in key markets.

Singapore's non-oil domestic exports (NODX) surged 68.4% year-on-year (YoY) in September, the fastest pace since February 1980, as strong electronics shipments linked to global semiconductor demand fuelled export growth, according to analysts.

Electronics exports climbed 107.6% from a year earlier, led by disk media (312.4%), personal computers (149.5%) and integrated circuits (74.7%). Non-electronics exports also accelerated 54.2%, supported by non-monetary gold (124.3%) and specialised machinery (50.4%).

Singapore recorded triple-digit growth in electronics exports to several key markets. Shipments rose 219.8% to the US, 109.6% to Taiwan and 222.6% to South Korea.

CGS International said it expects Singapore’s NODX to remain resilient through the fourth quarter, underpinned by sustained semiconductor demand and continued AI-related investment. September’s expansion highlights the strength of Singapore’s electronics export cycle, with robust shipments of disk media, PCs and ICs reflecting firm demand across major trading partners. 

The acceleration in non-electronics exports also points to broader support for export growth. However, export momentum remains vulnerable to a slowdown in global AI capital expenditure, weaker semiconductor orders or disruptions to regional trade flows. 

A more pronounced correction in technology demand could weigh on shipments. CGS International maintains its NODX growth forecast at 25% YoY, with sustained AI-related demand providing upside potential.

Nomura also agreed that the global chip supercycle and broadening AI-related demand will likely continue to boost electronics manufacturing, along with new capacity built. It maintains its 2026 GDP growth forecast of 5.7%.