Singapore tech stocks dip on AI sell-off, but analysts see correction, not end of boom

Singapore-listed technology stocks fell sharply on Friday before recovering some losses, as fears of tighter AI regulation under a Democratic-led US Congress triggered a global sell-off. Semiconductor equipment supplier UMS Integration plunged 15.2 per cent at the open before closing at S$1.69. AEM Holdings fell as much as 13 per cent in early trade before recovering to close at S$6.20, while Frencken Group sank over 8 per cent and Venture Corporation dipped 1.5 per cent at open. The Straits Times Index was down over 2 per cent, with analysts describing the drop as a correction in AI valuations rather than evidence the investment cycle had ended. Analysts noted Singapore's technology sector has "significant but concentrated" exposure to the AI cycle through the semiconductor supply chain, with AEM and UMS most directly linked. Long-term investments, including Micron's US$24 billion plan and Applied Materials' expansion, provide a cushion, while data centre spending is forecast to grow about 27 per cent annually through 2029.