Key facts
- Applied Materials has inaugurated a $500 million manufacturing campus in Singapore.
- The new facility is designed to double the company's global production capacity.
- This expansion is a strategic response to the escalating demand for AI-driven chips.
- The company projects its chip business to grow by over 30% annually in the near future.
- Applied Materials intends to increase its workforce in Southeast Asia by 1,000 employees.
Applied Materials has opened a new $500 million manufacturing campus in Singapore, a move aimed at doubling its global production capacity to meet the surging demand for AI-driven chips. The company's President and CEO, Gary Dickerson, anticipates that its chip business will experience growth exceeding 30% this year and continue at a similar pace in the coming years, fueled by the need for AI computing power.
The new Singapore campus will expand to three facilities, significantly increasing capacity in the Southeast Asian hub to nearly half of the company's total. Applied Materials also plans to add approximately 1,000 employees to its Southeast Asian workforce, primarily in Singapore, to support this expansion.
In parallel, Japanese companies are increasing their involvement in Asia's subsea cable market, adapting to AI-driven demand that is transforming infrastructure models. NTT Data Group, a leading cable builder, has formed a dedicated venture with Japanese partners to construct the Intra-Asia Marine (I-AM) Cable, connecting Japan and South Korea with Malaysia and Singapore, with branches to Taiwan and the Philippines. This strategic shift positions Japan as a key hub for digital infrastructure supporting the AI era.
Furthermore, SK Group Chairman Chey Tae-won announced that SK Hynix, a major supplier of high-bandwidth memory chips for AI, aims to triple its production capacity by 2034. The company has seen record profits and reached a trillion-dollar valuation due to its crucial role in the AI supply chain, with Chey expecting sustained demand for AI infrastructure.