Long-term outlook for chip industry intact

FILE PHOTO: A worker miniature is placed among printed circuit boards with semiconductor chips, in this illustration picture taken July 5, 2023. REUTERS/Florence Lo/Illustration/File Photo

SINGAPORE: A lack of consumer demand for electronic goods and an inventory glut continue to weigh down the profitability of Singapore’s semiconductor industry.

But analysts are optimistic about its long-term prospects as they expect a boost when next-generation devices spurred by artificial intelligence (AI) come into play.