AI chip demand drives 6 percent growth for Singapore in first quarter
A woman walks past the financial business district highrise buildings in Singapore on May 19, 2026. (Photo by Roslan RAHMAN / AFP)
Singapore's economy grew six percent year-on-year in the first quarter as demand skyrockets for artificial intelligence chips, balancing the fallout from the Middle East war, the government said on May 25.
As a major electronics hub, the city-state has seen a significant increase in the production of memory chips and server components that are essential for the data centers that power AI tools.
Due to the "better-than-expected" growth, the trade ministry said it would maintain its forecast for the economy to expand 2 to 4 percent in 2026.