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Why AI literacy is the new core skill for 21st-century educators

Artificial intelligence is already transforming industries worldwide, and educational institutions cannot lag behind if they aim to produce competent, workforce-ready graduates. As students use AI to improve efficiency in their daily tasks, instructors must be capable — if not fluent — of using the technology effectively. 

Below are the key reasons why AI literacy matters for an effective 21st-century educator.

Aligning AI use with educational goals

Like any learning tool introduced in the classroom, AI implementation must start with pedagogy, not technology. It should be treated as a way to strengthen learning, not another novelty that distracts from it.

Teachers need to understand how AI aligns with their classroom goals. For example, adaptive platforms can support students working at different paces. They adjust math questions in real time, offering struggling learners easier problems to practice before moving on, while providing advanced pupils with more complex challenges to keep them engaged.

In Singapore, five AI-powered tools are now used to give instant feedback for English, mathematics and short-answer response assignments. These platforms return marked homework in seconds, a task that previously took teachers days, especially when handling multiple classes. Without understanding the algorithms behind such tools, educators risk treating them as add-ons instead of integrating them into their curriculum.

For school leaders in Asia, especially in high-end urban systems, equipping teachers with the ability to assess the tool’s true pedagogical value and potential ensures AI delivers measurable outcomes instead of becoming an optional and piecemeal experiment.

Reducing teacher workload while preserving human judgment

The administrative demands of teaching often drain educators and take away time from actual instruction. AI systems can now automate many of these tasks, such as keeping track of attendance and grading tests. The tests can even be customised by grade level and topic, while teachers retain editorial control to ensure tests align with classroom material rather than generic departmental items.

Literacy in this manner means knowing how to maintain oversight and not let the tech rule entirely. Teachers must know how to operate these tools and when to intervene to correct errors and biases. In Korea, for example, routine tasks are delegated to intelligent systems through AI digital textbooks now introduced in grades three, four, seven and 10. Instructors take on the role of facilitators, guiding learning rather than being the sole source of instruction. 

Also Read: Craft your next with AI: Orchestrating a new intelligence through adaptive ecosystems

By offloading repetitive work, educators gain more time for direct interaction with students, which raises teaching quality. This shift is especially valuable in countries like Laos, where class sizes can reach up to 60 students per room.

Building confidence amid fast-moving change

The rapid pace of AI development has left many teachers feeling like they are constantly trying to catch up, especially tenured faculty members who are more comfortable with traditional classroom tools.

A recent survey found that 31 per cent of academic professionals viewed machine intelligence somewhat negatively, believing it would harm K-12 teaching and learning. Only 6 per cent said it would have very positive effects, while 14 per cent admitted they were unfamiliar with AI platforms altogether.

Without structured training, this uncertainty can slow the adoption and effective use of machine intelligence in classrooms. School leaders need to take the lead in embedding AI competency into professional development, through workshops, micro-credentials or peer learning, to give teachers confidence and space to experiment with tools gradually instead of avoiding them.

In India, one education company has launched a program to train 72,000 teachers across Asia in AI-powered solutions. The goal is to prepare them with the skills needed to integrate emerging technologies into everyday teaching.

For teachers who prefer to learn about AI independently rather than wait for their administration to act, the University of Helsinki offers Elements of AI, a free online course designed to demystify the technology and build practical understanding of what the system can and cannot do. The program combines theory with application, allowing educators to explore AI at their own pace.

Ethical and social awareness

While AI can improve efficiency for educators, it also brings significant responsibility. Understanding the technology goes beyond operation. It also requires awareness of how algorithms shape results and potentially reinforce biases. For example, when asked to create an image of a nurse, generators often produce a woman, reflecting the age-old biased data it was trained on that associates nursing with women and medicine with men. 

The teacher’s role is to inculcate critical thinking and influence students on how they perceive and question the algorithmic systems in their daily lives within the school and beyond, from news recommendations to credit scoring. 

AI also presents unique challenges in academic settings. Beyond equity and access to modern tools, it must be treated as a support for learning, not as a replacement for instructors or learners. Teachers who leverage AI to design lesson plans risk copyright infringement. For the students, nine in 10 admit they use generative AI for assignments. 

Also Read: How prescriptive AI is powering SEA’s leap toward semi-autonomous manufacturing

The academic community often looks to the Belmont Report for guidance on ethics, emphasising respect for persons, beneficence, especially in healthcare applications, and justice, which includes fairness, accessibility and the broader societal impact of AI.

Educators who engage critically with AI themselves are in a stronger position to guide students and prepare graduates for workplaces where algorithmic decision-making has become routine.

Addressing equity and accessibility

AI literacy involves recognising the opportunities and risks of new tools in diverse classrooms. Intelligent tutoring systems can help level access to one-on-one support, particularly in under-resourced schools. At the same time, without careful monitoring, algorithms may reinforce discrimination or disadvantage learners with limited digital access.

In countries such as the Philippines and Indonesia, where connectivity gaps remain, teachers’ ability to adapt AI systems for offline or low-bandwidth use is critical. Leaders who invest in training educators to anticipate these challenges will create more inclusive and resilient learning environments.

AI literacy is the new core skill for 21st-century teachers

Just as reading and writing became the foundation of education in earlier centuries, AI competence now joins the core skill set professionals need.

However, teachers cannot pour from an empty cup and demonstrate skills they do not possess. For the 21st-century educator, AI literacy goes beyond use for efficiency. It allows them to bring critical oversight, ethical reflection and meaningful technology integration into lessons.

Are you ready to join a vibrant community of entrepreneurs and industry experts? Do you have insights, experiences, and knowledge to share?

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Tech crash 2.0: AI hype meets labour reality as Nasdaq and Bitcoin tumble in tandem

At the heart of this turmoil lies a potent mix of deteriorating labour market conditions, evaporating liquidity in digital asset markets, and a sharp repricing of artificial intelligence-driven equity valuations that had been stretched to unsustainable levels. The data paints a coherent picture of a market losing its nerve, with investors rapidly rotating out of speculative assets and into safer havens, even as technical indicators flash warnings of oversold conditions that may soon invite a countertrend move.

The trigger for this week’s pullback was unequivocally the labour market report from Challenger, Grey & Christmas, which revealed that US-based employers announced 153,074 job cuts in October 2025. This figure represents a staggering 175 per cent increase compared to the same month last year and marks the highest number of October layoffs since 2003.

The scale of these cuts, driven by a combination of slowing consumer and corporate spending and the accelerating adoption of artificial intelligence for cost optimisation, sent shockwaves through equity markets already anxious about lofty valuations in the tech sector. The data provided tangible evidence of an economic slowdown that many investors had previously dismissed as transitory, forcing a reassessment of the resilience of the US economy in the face of persistent inflation and higher-for-longer interest rates.

This reassessment was immediately reflected in the performance of US equities on Thursday, November 6, 2025. The tech-heavy Nasdaq Composite bore the brunt of the selloff, plummeting 1.9 per cent, while the broader S&P 500 declined by 1.1 per cent and the Dow Jones Industrial Average fell by 0.8 per cent. The sharp move lower in the Nasdaq, in particular, was a direct consequence of investors taking profits from AI-related stocks that had powered the market’s rally for much of the year.

The behaviour of the US Treasury market further validated this flight from risk. As investors sought safety, yields on government debt fell sharply. The yield on the two-year Treasury note dropped by 7.2 basis points to settle at 3.557 per cent, while the benchmark 10-year yield declined by 7.6 basis points to close at 4.083 per cent. This rally in bonds signalled growing expectations that the Federal Reserve’s tightening cycle may be nearing its end, or that a more severe economic downturn could be on the horizon, prompting a potential pivot in monetary policy.

The US Dollar Index, a traditional safe-haven asset, paradoxically weakened, falling by 0.5 per cent to 99.71. This counterintuitive move can be interpreted as a sign that the market’s fear is not of a global crisis that would boost demand for the dollar, but rather a more domestic US-centric slowdown. In such a scenario, the expectation of future rate cuts by the Fed outweighs the currency’s safe-haven appeal. This narrative was reinforced by the action in the commodities market.

Gold, the ultimate monetary hedge, saw its price rise to US$4,001 per ounce, a gain of 1.5 per cent, as capital rotated into a store of value perceived to be outside the direct influence of central bank policy. Conversely, oil prices weakened as the prospect of a US economic slowdown dented demand expectations. Brent crude settled at US$63.38 per barrel, down 0.2 per cent, a move exacerbated by Saudi Arabia’s decision to lower the official selling prices of its crude oil to Asian customers, a clear signal of its own concerns over future demand.

Also Read: Crypto rebounds as labour data calms markets but is the rally sustainable?

In the digital asset space, the market’s reaction was swift and severe. The crypto market fell 1.65 per cent over the last 24 hours, extending a 7.2 per cent weekly loss. This selloff was not driven by a single factor but by a perfect storm of negative catalysts. The primary trigger was a decisive technical breakdown in Bitcoin’s price structure.

For weeks, the US$100,000 level had served as a critical psychological and structural support. When Bitcoin’s price dropped below this key threshold, it activated a cascade of automated sell orders from a fragile market that had been clinging to hope. This breakdown was confirmed by its close below its 365-day moving average at US$102,000, a long-term trend indicator whose breach is a serious bearish signal for long-term investors.

Compounding this technical failure was a dramatic evaporation of market liquidity. In an environment of fear, traders became unwilling to take on risk. Derivatives volume plunged by 39 per cent in 24 hours, with open interest collapsing to its lowest level since May 2025.

The spot-to-perpetual trading ratio of 0.24, a metric that shows the dominance of leveraged trading over simple spot transactions, indicated that traders were not just selling but were also actively avoiding any form of leveraged position. This lack of liquidity amplified the price moves, creating a negative feedback loop where a small sell order could create a disproportionately large price drop due to the absence of buyers.

Also Read: Why crypto is crashing: DeFi hacks, Bitcoin cycle fears, and the Fed’s data blackout

The behaviour of the spot Bitcoin ETFs provided the most compelling evidence of a macro-driven selloff. This week, these funds saw a staggering US$3.6 billion in net redemptions, marking one of the worst outflow streaks since their inception. This was not a retail-driven panic but a wholesale retreat by institutional investors. These large players, who are more attuned to macroeconomic signals and portfolio risk management, used the ETFs as a convenient vehicle to exit their crypto exposure en masse.

Their actions decisively tethered the fate of the entire crypto market to that of the Nasdaq, with the two assets showing a near-perfect 0.95 correlation this week. This link demonstrates that for the current market cycle, crypto is being treated not as a separate, uncorrelated asset class, but as a high-beta, risk-on component of the broader technology and growth equity complex.

The path forward for the markets is now precariously balanced on a knife’s edge. The current oversold conditions in both the Nasdaq and Bitcoin, with the latter’s RSI at a low 31.5, suggest that a short-term bounce is a distinct possibility. A sustained recovery will require a fundamental shift in the underlying narrative. For equities, that would mean evidence that the labour market is stabilising or that the Fed is ready to signal a clear pivot towards rate cuts.

For Bitcoin, the critical threshold is a decisive daily close back above the US$100,000 level to invalidate the bearish technical structure, coupled with a halt to the ETF outflows and a return of institutional confidence. Until these conditions are met, the market will remain vulnerable to any further negative macroeconomic data, and the current risk-off environment is likely to persist.

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Rethinking connection: Why belonging is the new currency of global teams

ChatGPT said: Discover how Southeast Asia’s leaders are redefining trust, culture, and belonging in a borderless world shaped by remote work. e27

Remote work has opened the world, but it has also reshaped what it means to build a team. For many companies in Southeast Asia, the ability to hire beyond borders has unlocked new talent and fresh perspectives. Yet it has also revealed a deeper challenge: how to build trust, culture, and belonging when teams rarely share the same room, city, or time zone.

At a webinar co-hosted by e27 and Remote, leaders from across the region shared how they are adapting to this new normal. The discussion made one thing clear. The future of work is not just about technology that connects people, but about creating systems that make connections meaningful.

Redefining what it means to work together

The pandemic normalised distributed work, but sustainability depends on more than flexibility. The companies thriving today are those that see remote work as a design challenge rather than an operational compromise.

At the webinar, participants discussed how culture must be built with intent. When employees are spread across cities or countries, informal interactions no longer happen by default. Communication, transparency, and shared rituals have to be created on purpose.

Many leaders noted that culture now starts with clarity. Teams that define their values early and revisit them often tend to feel more connected, regardless of geography. As one speaker shared, “We used to think culture was about office perks. Now it is about how we show up for each other.”

Also read: Why digital parks are becoming the backbone of the Philippines’ emerging tech ecosystem

From global hiring to inclusive belonging

Technology has made it possible to hire anyone, anywhere. The harder question is how to ensure everyone feels seen and valued.

Leaders at the webinar pointed out that inclusion in remote teams goes beyond representation. It requires empathy for different work rhythms, communication styles, and cultural expectations. Time zone sensitivity, meeting design, and feedback norms all matter.

These small details shape whether global teams feel equitable or fragmented. The strongest teams are those that balance autonomy with connection, creating a sense of shared ownership even across distance.

“Distributed work has forced us to be more intentional,” one participant said. “When you remove physical proximity, you realise how much trust really drives collaboration.”

Also read: How data and collaboration are powering Vietnam’s urban mobility revolution

Lessons from Asia’s remote-first leaders

Southeast Asia’s startups and scaleups are embracing distributed work as a growth strategy. Many began remote out of necessity but have since found it unlocks resilience and diversity of thought.

Speakers from Remote shared how global compliance and payroll infrastructure are helping companies hire confidently beyond their home markets. But just as important as the legal frameworks are the human ones. Companies are investing in digital onboarding experiences, mentorship programs, and leadership training that prioritise empathy.

The shift is clear. Remote work is no longer a cost decision or a pandemic workaround. It has become a strategic lever for accessing talent and strengthening organisational culture.

Also read: AI Co-Pilots in action: How SMBs are redefining productivity in the age of intelligent workflows

Rethinking how connection is built

e27’s ongoing collaborations, including with Remote, have shown that innovation in the future of work often begins with open dialogue. When leaders exchange experiences across borders, they uncover both shared struggles and creative solutions.

Across these conversations, a few themes keep returning. Belonging cannot be automated. Empathy must be part of the workflow. And inclusive practices are not just good for morale but essential for business performance.

These insights reflect a growing maturity in Southeast Asia’s approach to remote work. The region’s founders and executives are not asking how to survive in a distributed model, but how to thrive in it.

Also read: Scaling smarter: How Hong Kong founders are redefining growth

Where the conversation leads next

The future of global teams will be shaped by how organisations design for connection. Companies that invest in inclusion, empathy, and communication will continue to build trust across borders.

Remote work has made teams global. The next step is to make them truly connected. Success will belong to organisations that treat belonging not as an afterthought but as the foundation of performance and innovation.

If your organisation wants to explore the future of work or host conversations that bring together HR, tech, and leadership communities, let’s make it happen. You can reach the Innovate team here.

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Ecosystem Roundup: Metaverse Filipino Worker rises as blockchain’s hero; SEA startup funding hits US$287M; China trails US in AI revenue

The Philippines presents one of the most fascinating case studies in grassroots blockchain adoption. As the Philippine Blockchain Report 2025 reveals, the country’s Web3 trajectory diverges sharply from Western markets: instead of speculative trading, its foundation was built on economic necessity.

The rise of play-to-earn (P2E) gaming—most notably Axie Infinity—turned blockchain into a lifeline for thousands during the pandemic, giving birth to the so-called “Metaverse Filipino Worker.” For many, this was not just a game but a livelihood that often surpassed traditional wages, driving unprecedented engagement and digital inclusion.

The rise of decentralised guilds like Yield Guild Games (YGG) further democratised access by enabling those without capital to participate through scholarship systems. This model not only generated income opportunities but also embedded community ownership within the Web3 ecosystem. Startups like Sovrun’s pivot toward player empowerment and digital asset ownership signal an evolution from mere earning to creative participation.

While mass adoption is impressive, the report highlights a gap between use and understanding—blockchain is embraced for utility, not ideology. Yet, through gaming, entertainment, and culture, Filipinos are shaping a uniquely people-powered Web3 movement, positioning the Philippines as Southeast Asia’s crucible for inclusive digital innovation.

REGIONAL

SEA startup investments rise for second month, totalling US$287M in Oct: The resurgence in investor activity–combined with larger ticket sizes and improved sentiment suggests that the region may be on track to end 2025 on a note of measured recovery and renewed confidence.

Kakao Pay, Artem Ventures back Paywatch’s US$20M Series A: The funding fuels expansion of AI-powered earned wage access and financial wellness tools across Asian markets. Kakao and Paywatch will co-develop enterprise financial solutions across both SEA and South Korea.

Living Lab Ventures, Spiral Ventures launch fund to strengthen Japan-SEA collaboration: The Japan Thematic Fund by reflects a growing urgency among Japanese investors to tap into SEA’s startup growth and consumer momentum.

BLOCK71 launches UniVentures to fuel Vietnam’s university startup surge: Designed as a “University to Unicorn” platform, UniVentures connects Vietnamese students, alumni, and researchers with regional networks in Singapore and beyond, offering mentorship, investment opportunities, and access to cross-border markets.

REPORTS, FEATURES & INTERVIEWS

The rise of the Metaverse Filipino Worker: Blockchain’s unlikely economic hero: Economic hardship drove Filipinos to blockchain gaming, birthing the Metaverse Filipino Worker and redefining the nation’s digital economy.

Blockchain in action: How Philippine government is modernising public services: The Philippines embraces blockchain beyond crypto, launching DLT projects to improve transparency, public finance, and digital governance nationwide.

How prescriptive AI is powering SEA’s leap toward semi-autonomous manufacturing: Infinite Uptime’s Co-CEO Karthikeyan Natarajan explains how prescriptive AI is transforming Southeast Asia’s factories into intelligent, semi-autonomous operations.

Damien Kopp on rethinking AI, power, and business resilience: Kopp, the founder of KoncentriK, shares insights on AI strategy, sovereignty, and resilience, drawing from decades of experience in global tech leadership.

INTERNATIONAL

Hong Kong launches AI strategy to attract global investment: The government has launched the AI Talent Connect initiative to attract international talent and has invested or co-invested in AI companies, including startups, through the Hong Kong Investment Corporation.

Chinese AI startups lag US rivals in global revenue: report: As of August, only four Chinese private firms—Glority, Plaud, ByteDance, and Zuoyebang—appeared in the world’s top 100 AI apps by annual recurring revenue. Together, they generated a combined US$447M, or just 1.2% of the US$36.4B total.

Kakao Q3 profit more than doubles to US$133.2M: The South Korean tech firm’s reported net income rise 145.6% y-o-y, exceeding analyst expectations. Operating profit reached US$142.8M, up 59.4%, while sales climbed 8.6% to US$1.44B, both marking quarterly record highs.

Tesla to produce EV without pedals in April 2026: CEO Elon Musk described the Cybercab as designed for full self-driving and robotaxi use, with no side mirrors and a focus on cost efficiency. This announcement follows shareholder approval of a compensation package for Musk valued at up to US$1T in company shares.

OpenAI’s Sora hits 470,000 android downloads on first day: Sora lets users create AI-generated videos and features a TikTok-style feed and an option called Cameos, where users and friends are animated by AI. Sora competes with Meta’s AI app, which has expanded to Europe after launching in the US.

Tesla investors approve US$1T pay deal for Elon Musk: The plan could increase Musk’s stake in Tesla to at least 25% over the next decade, but he will only receive the full amount if Tesla’s value rises to US$8.5T and operational targets are met.

ECHELON

Why the Philippines is ready to lead: Jojo Malolos on rebuilding PayMongo and the country’s fintech breakout: In this fireside chat, Malolos discussed leading PayMongo’s turnaround after a leadership crisis.

SEMICONDUCTOR

US to ban Nvidia’s latest AI chip sales to China: Nvidia has already provided samples of its latest scaled-down AI chip, the B30A, to several Chinese customers. The B30A chip can be used to train LLMs in clustered setups, a capability many Chinese companies require.

SoftBank said to explore potential takeover of US chipmaker Marvell: The Japanese conglomerate reportedly explored combining Marvell with Arm Holdings, the UK chip designer it controls, but discussions did not result in an agreement.

Musk plans Tesla AI chip factory, considers Intel partnership: He noted Tesla is developing its fifth-generation AI chip, which will power its autonomous driving systems, and continues to work with TSMC and Samsung for chip production.

US-based Microchip forecasts lower Q3 sales due to inventory cuts: The Arizona-based chipmaker said it expects net sales between US$1.1B and US$1.2B, while analysts surveyed by LSEG predicted US$1.2B. Shares fell nearly 6% in after-hours trading following the announcement.

AI

Nvidia CEO says China poised to win global AI race: Speaking at a conference in London, Jensen Huang cited Beijing’s energy subsidies and the large number of AI researchers in China. He noted that about half of the world’s AI researchers are based there and that most leading open-source AI models are created in the country.

Exploring the game-changing role of AI in online courses: While AI has the potential to improve online learning greatly, it is important to carefully consider the ethical implications of using AI in education and ensure that it is used in a way that benefits both students and educators.

AI transformation starts with people, not platforms: When employees understand the why, they start curating, designing, and refining AI like insiders. That’s when adoption sticks — because it’s their solution, not the company’s system.

What if AI is not here to replace us, but to reinvent us?: The critical question is not, “What if AI replaces us?” It is, “What if AI helps us reinvent ourselves?” Because the future won’t be shaped by how efficiently AI replicates what we already do — but by how courageously we imagine what humans and AI can create together.

AI isn’t just automation – it’s a mirror of how we should learn: AI’s true power isn’t speed but adaptability—empowering creators to learn continuously, build intentionally, and evolve through feedback, community, and human-centred innovation.

THOUGHT LEADERSHIP

Craft your next with AI: Orchestrating a new intelligence through adaptive ecosystems: Enterprises are shifting from single-model automation to adaptive AI ecosystems that integrate learning, governance, and real-time decision-making.

Crypto rebounds as labour data calms markets but is the rally sustainable?: Crypto markets rebound amid regulatory reprieve, ETF optimism, and technical resets as global risk appetite steadies on labour data.

Why digital parks are becoming the backbone of the Philippines’ emerging tech ecosystem: As the Philippines enters a pivotal decade of digital transformation, innovation districts and digital parks are evolving into critical ecosystem engines.

You can’t eat IRR: Why DPI is now the metric that matters: By focusing on realised distributions, DPI (Distributions to Paid-In Capital) has shifted from a supporting role to the main metric that investors are watching.

From spoiled cabbage to ASEAN shelves: The kimchi playbook rewriting Asian SME expansion: Ong Kim’s kimchi success in Vietnam shows how true localisation, not global imitation, helps Asian SMEs build lasting culturally rooted brands.

The future is skills, not jobs: Skills-based hiring is a talent acquisition approach that evaluates candidates based on their unique and individual abilities and skills, as opposed to assessing them based on more “traditional” measures, like previous job titles, educational attainment, or other more subjective factors.

Surviving a recession: How to navigate layoffs and come out stronger: Looming recession is creating only more anxiety for further elimination or roles. This affects not only the talented folks who unfortunately got laid off, but also folks who are employed and are living in fear, uncertainty and doubt.

Why AI literacy is the new core skill for 21st-century educators: While AI can improve efficiency for educators, it also brings significant responsibility. Understanding the technology goes beyond operation. It also requires awareness of how algorithms shape results and potentially reinforce biases.

The CTO playbook: Building a tech team from scratch: The people you bring on board in the early stages are your greatest asset. Not only do they shape your company’s culture, but they will define how quickly and effectively you can build your product.

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Asia rises in the AI chip race: China to outgrow US by 30 per cent by 2030

The global artificial intelligence (AI) chip sector is on track for explosive growth this decade, projected to nearly quadruple in size, reaching a US$330 billion industry by 2030, according to data revealed by mystery boxes website Jemlit.com. This monumental rise is being fuelled by an unprecedented boom in AI startups, machine learning advancements, and critical capital inflows.

Already outpacing the broader technology sector, the AI chip market has demonstrated remarkable velocity, surging over 400 per cent in value over the last five years alone to reach US$92 billion as of this year. This rate of growth is nearly three times higher than that observed in the global AI industry, which grew by 170 percent during the same five-year period, reaching a valuation of US$254 billion by 2025.

US$47B added annually: The scale of future growth

The remarkable trajectory of AI chips—essential components driving innovation across cloud computing and major tech advancements—is forecast to continue unabated.

Also Read: Semiconductors at risk: The invisible threats that could break global supply chains

Data indicate that revenue in the AI chip market is expected to surge by 258 percent between 2025 and 2030. This future expansion translates to an average annual increase of roughly US$47 billion in revenue added to the market each year.

While the peak annual growth rate, recorded at 49 per cent in 2024, is anticipated to ease slightly, annual expansion is expected to remain firmly in the double digits, ranging between 35 per cent and 22 per cent through to the end of the decade.

Tech giants such as Nvidia, AMD, and Google are key players constantly improving chip performance, responding to immense global demand despite facing supply chain challenges, export restrictions, and the stockpiling of existing inventory—factors that have previously made these components more expensive and harder to source. The market’s strong resilience suggests highly optimistic future projections.

Volume explosion and China’s accelerating dominance

The physical volume of AI chips is set to skyrocket alongside the market’s financial valuation. Projections indicate a massive 283 per cent surge in unit volume, rising from 66.2 billion units in 2025 to a staggering 254 billion units by 2030.

A crucial geopolitical insight for the Southeast Asian tech ecosystem is the accelerating pace of growth in key regional player, China. Although just five markets—the US, China, France, Canada, and Germany—currently generate nearly a third of all AI chip sales globally, growth rates vary sharply.

China is leading the global expansion and is officially projected to be the fastest-growing major AI chip market.

Key growth differentials by 2030 include:

  • China: Projected growth of 283 per cent, reaching US$31.1 billion in revenue.
  • The US: Projected growth of 252 per cent, reaching a commanding US$48.6 billion in revenue, retaining its status as the world’s largest market.

Crucially, China’s projected growth rate (283 per cent) is roughly 30 per cent above that of the US(252 per cent) over the same period.

Also Read: ‘The future of semiconductor manufacturing is regional’: Global TechSolutions CEO

Other major global markets, France, Canada, and Germany, are projected to experience equally impressive growth of 240 per cent each, reaching US$13 billion, US$10.9 billion, and US$10.8 billion in revenue, respectively, by 2030. This geographical comparison highlights the shift in momentum and the growing significance of the Chinese market as a key driver of AI chip demand and innovation in Asia.

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