The positive outlook on the semiconductor industry has pushed DBS Research Group to maintain its ‘buy’ call on UMS Holdings at a revised target price of $1.37.

“We remain positive on the semiconductor sector, on the back of acceleration of 5G, artificial intelligence (AI) and other technology-driven developments such as Smart Cities and increased demand for data,” analyst Ling Lee Keng says.

Referencing data from SEMI – Semiconductor Equipment Materials International – analyst Ling says semiconductor equipment manufacturing is slated to increase 6% year-on-year in 2020 to US$63.2 billion ($86.8 billion) and 17.4% to US$70 billion in 2021.

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