Singapore in focus: What the latest electronics indicators mean for Asia

Research evidence excerpt

Singapore in focus: What the latest electronics indicators mean for Asia

22 July 2026

Singapore in focus EconomicsAsia

What the latest electronics indicators mean for Asia

◆ Asia’s electronics PMI rose to 55.0 last month, the highest Justin Feng

since June 2018; global electronics PMI also strong (55.7) Economist, Asia The Hongkong and Shanghai Banking Corporation Limited

justin.feng@hsbc.com.hk

◆ Surging AI-related demand for advanced electronics +852 22887108

continues to drive up prices and pressure supply chains Frederic Neumann

Chief Asia Economist, Co-head Global Research Asia

The Hongkong and Shanghai Banking Corporation Limited

◆ Singapore is a leading producer of NAND flash memory chips fredericneumann@hsbc.com.hk

and a key beneficiary of the AI boom, but risks loom ahead +852 2822 4556

Abanti Bhaumik

Associate

Bangalore

AI demand keeps surging

Operating conditions in the electronics sector remained strong in June. The global

electronics PMI rose to 55.7,1 its highest level since January 2022 (see Chart 1).

New orders increased to 56.0, the strongest reading since October 2021, led by

computing electronics on the back of robust AI-related demand (see Chart 2).

Over the past year, persistent demand for select electronics (e.g., memory chips),

alongside supply-chain disruptions in the Strait of Hormuz, has pushed prices higher,

increased order backlogs, and lengthened supplier delivery times across the global

electronics industry (see Chart 3 and Chart 4). These dynamics are most visible in

Asia, given the region’s role as a primary producer of AI hardware. Asia’s electronics

PMI rose to 55.0 last month, the highest level since June 2018 (see Chart 6).

Within Asia, Korea and Taiwan are most closely linked to the US AI hyperscalers’

capex upcycle.