Global industry group SEMI said semiconductor demand is expected to remain strong even as supply chains face pressure from Middle East tensions and wider trade uncertainty, Reuters reported Tuesday.

SEMI expects the sector to reach $1 trillion in sales this year, doubling to $2 trillion by 2035, driven largely by rapid expansion in AI-linked data centers, according to the report.

CEO Ajit Manocha told Reuters that geopolitical risks are unlikely to derail near-term growth, though shortages of key materials such as helium and bromine could weigh on the longer-term outlook. He also highlighted supply vulnerabilities and urged Southeast Asian economies to expand chip fabrication capacity to strengthen and diversify global production networks, the news outlet reported.

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