The last two years have seen a sharp surge in demand for electronic components and semiconductors as the world embraces technology, the internet, and cloud computing.
Numerous businesses had undergone digitalisation to compete more effectively, while millions of people used social media and video conferencing tools to stay in touch with loved ones.
However, there are signs that a slowdown may be imminent in the technology space.
The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TPE: 2330), or TSMC, had slashed its capital spending budget by roughly 10% as it braces for a broad downturn.
With this adjustment, the share prices of many Singapore technology-related stocks have skidded to their 52-week lows.
Test and handling specialist AEM Holdings (SGX: AWX) saw its share price hit a year-low of S$3.03 and is down 42% year to date.
Electronic component manufacturer Micro-Mechanics (Holdings) Ltd (SGX: 5DD), or MMH, had its share price slashed by a quarter from S$3.38...