THE artificial intelligence (AI) boom is translating into stronger manufacturing and export activity across Asia-Pacific, giving chip-producing economies a lift even as the broader global economy slows, Moody’s Analytics said.
In its latest Global Outlook, Moody’s said the AI investment cycle has become a key reason the world economy has avoided a sharper slowdown, as demand for chips, power and computing infrastructure continues to drive capital spending.
‘A steady stream of new AI models has pulled fresh capital into chips, power, and computing, driving stock prices skyward and sparking a global capital expenditure spree,’ Moody’s said.
The impact, however, is uneven across economies.
While gross domestic product (GDP) gains are harder to capture in countries that import much of the hardware used in data centers, Asia-Pacific economies that manufacture semiconductors and other computing equipment are seeing the boom feed more directly into production and exports, the analytics firm said.
The Philippines is positioned within this regional supply chain, with the local semiconductor and electronics industry expecting continued growth as demand for AI-related hardware expands.
Recently, Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) President Dan Lachica said the industry now expects 10-percent growth in 2026, after initially projecting flat growth. The sector grew 16 percent in 2025.
Also, SEIPI has proposed that Pax Silica, the planned semiconductor-focused industrial hub under the Luzon Economic Corridor, serve as a manufacturing anchor that brings together advanced manufacturing, research and development, logistics, digital infrastructure and supporting industries.
The proposal would seek to expand the country’s role beyond its traditional concentration in semiconductor assembly and testing.
On the other hand, the Philippines is also covered by a 12.5-percent US tariff rate for economies with trade agreements with Washington, while semiconductors and other products are among the exemptions under the US tariff regime.
The carve-outs are particularly relevant to technology exporters because they limit the impact of tariffs on semiconductor shipments.
Elsewhere in Asia, Taiwan, the world’s leading producer of advanced chips, grew by nearly 9 percent in 2025 and is expected to post double-digit growth this year, Moody’s said.
The strong performance reflects the scale of the AI-driven investment cycle, but Moody’s warned that the boom may not continue at its current pace.
Stretched equity valuations, supply constraints and uncertainty over the longer-term profitability of AI-related investments could lead to a pause, it said.
‘With the AI boom papering over the strain from higher inflation and tight policy, the risks facing the baseline forecast tilt firmly to the downside. Geopolitics tops the list,’ Moody’s said.
It expects global GDP growth of 2.5 percent in 2026 and 2.8 percent in 2027, below the more than 3-percent pace the global economy could sustain.