Singapore’s Wong Warns AI Semiconductor Boom Will Face Correction

Singapore’s artificial-intelligence boom is supporting its semiconductor industry, but Prime Minister Lawrence Wong warned Oct. 8 that the boom will eventually face a correction, urging the country to use current demand before conditions change.

“No boom is forever. At some point, there will be a correction,” Wong said at a conference in Singapore. He added that the timing, form and effects of any downturn were unknown.

Wong said Singapore does not make the most advanced AI chips but has a broad semiconductor base. GlobalFoundries and Micron operate in the country, producing memory and specialty chips that are in demand as AI investment expands.

Singapore produces 10% of global semiconductor output. The current cycle has also benefited logistics and professional-services businesses, Wong said.

Singapore’s economy grew 5.9% year over year in the second quarter of 2026. The country’s full-year growth forecast was raised to 4.5%-5.5%, from an earlier range of 2.0%-4.0%.

“So our approach is to make good use of this window of opportunity now, where there is external demand, capitalise on it, build new capabilities and create better jobs for Singaporeans,” Wong said.

Wong framed the outlook as both an industrial and workforce challenge. He said Singapore’s priority should be protecting workers rather than preserving every individual job as AI changes industries.

Wong said the government, employers and unions must work together as those changes occur. He did not provide a timetable for a semiconductor downturn or estimate how severe it could be.