Major tech giants like Micron (MU.US) are rushing into Asia, while chip newcomer GVT firmly believes that the AI boom is far from over.

With giants such as Micron Technology, Inc. (MU.US) and Infineon Technologies (IFNNY.US) building new factories in Asia, Singapore chip equipment manufacturer Grand Venture Technology Ltd. (GVT) is benefiting from this trend. CEO Julian Ng of GVT stated that as industries such as healthcare, education, and finance increasingly adopt artificial intelligence (AI) agent services like Microsoft Corporation's (MSFT.US) Copilot, the demand for AI chips is expected to grow in the coming years. This is good news for emerging equipment suppliers like GVT, as chip manufacturers need to invest in their production systems. Ng said, "We are catching the wave of artificial intelligence." Claims that AI is a bubble are incorrect, as many industries have not yet adopted this technology. While GVT remains a niche player in the chip ecosystem, its annual revenue and stock price have doubled since its listing on the Singapore stock market in 2019. The company is benefiting from the growth of the chip industry in Asia, selling chip manufacturing tools to factories from Malaysia to China. Ng stated that despite efforts in the US and Europe to establish chip factories domestically, Asia will remain a key location in the global chip supply chain. He said, "Reshoring manufacturing is not that simple, as it requires years of qualification accumulation and understanding of the ecosystems." GVT has developed technologies such as hybrid bonding, allowing more layers of chips to be stacked in a single package, thereby increasing product efficiency. This technology is crucial in the production of complex semiconductors including high-bandwidth memory (HBM) chips. HBM chips are widely used in AI computing to provide faster data access speeds and lower energy consumption. Many chip manufacturers are increasing chip production in Southeast Asia. Last week, Micron announced plans to invest $7 billion in producing HBM chips in Singapore. Infineon started production of data center chips in a $7.2 billion factory in Malaysia last year and is currently building a new power module factory in Thailand. However, uncertainties in the chip industry have been brought about by the tariff policies of US President-elect Donald Trump. Analysts Atif Malik and Elizabeth Sun of Citigroup warned last week that weak consumer demand and overseas economic slowdown may also affect the capital expenditures of large chip manufacturers like Samsung Electronics and Intel Corporation (INTC.US). GVT is considering a secondary listing in Kuala Lumpur to diversify its investor base. Ng did not disclose the details of the listing plan, but he mentioned that the raised funds would help the company develop its business and provide funds for acquiring advanced material companies.