Hong Leong Investment Bank Bhd (HLIB) has declared that the global semiconductor supply chain has entered a full recovery phase in 2026, driven by relentless demand for artificial intelligence compute.
The Malaysian investment bank’s assessment underscores a shift from cyclical volatility to sustained growth across the industry, as data center build-outs and AI infrastructure projects continue to absorb available capacity.
The bank’s view aligns with recent market sentiment, where global semiconductor equities have rallied on the back of strong financial results from key US manufacturers.
Investor confidence in the AI sector has returned sharply, with memory chip makers and foundry operators seeing renewed buying interest as order books fill for the remainder of the year.
This broad-based recovery suggests that the tailwinds from AI are no longer confined to a few hyperscalers but are permeating the wider supply chain.
From advanced packaging to memory modules, the demand signal appears robust enough to support higher utilization rates and improved pricing power for suppliers.