AEM’s H1 net profit rises 10 times to S$30.8 million on stronger AI chip demand

KUALA LUMPUR, 13 AUGUST 2026 —

**AEM’s Half-Year Profit Soars 10-Fold to S$30.8 Million on AI Chip Demand Surge**

Net profit surged to S$30.8 million in the six months ended June 30, 2026, from S$3.1 million in the same period of 2025, while earnings per share (EPS) rose to S$0.0979 from S$0.0098, according to a bourse filing on Aug 12. Revenue climbed 30% to S$247.2 million, up from S$190.3 million a year earlier, as demand from a key fabless AI and high-performance computing (HPC) customer accelerated.

This marked AEM’s fourth consecutive quarter of net profit growth and third straight quarter of revenue expansion, led by its test-cell solutions segment, which supplies highly parallel test systems with advanced thermal-control capabilities. The segment’s revenue jumped 52.5% to S$180.9 million, accounting for 73.2% of total revenue.

The contract manufacturing arm, which supports the company’s flagship AMPS test-equipment platform, saw internal revenue more than quadruple as it pivoted to meet demand for test-cell solutions. However, external revenue from contract manufacturing fell 5.7% to S$63.2 million due to weaker orders from oil and gas clients. The instrumentation segment, meanwhile, reported revenue of S$3.1 million, down from S$4.6 million in the prior-year period.

AEM also highlighted growth in its device-specific configurables and collaterals business, which reached S$72.3 million in Q2 2026, up 12.6% from the previous quarter. The company operates under a “razor-razorblade” model, where initial equipment sales drive recurring revenue from consumables and upgrades as customers introduce new chip designs.

**Malaysia and Regional Impact**

AEM’s strong performance reflects broader trends in Southeast Asia’s semiconductor ecosystem, where Malaysia plays a pivotal role as a manufacturing and assembly hub. The country is home to major global semiconductor firms, including outsourced semiconductor assembly and test (OSAT) providers and contract manufacturers that supply components to AI and HPC supply chains.

Industry analysts note that Malaysia’s semiconductor sector, valued at over RM200 billion (US$43 billion) in 2025, stands to benefit from increased test-equipment demand as AI chip complexity rises. The government’s National Semiconductor Strategy, launched in 2024, aims to position Malaysia as a high-value manufacturing center, with incentives for advanced packaging and test operations.

AEM’s revenue guidance upgrade to S$630–680 million for FY2026—from its prior forecast of S$550–600 million—signals sustained demand from key customers, including a fabless AI/HPC client and a personal computer and foundry customer adopting the AMPS platform. The company also expects to ship its first memory final test handler in Q4 2026, ahead of a 2027 production ramp-up.

As of Aug 12, AEM’s backlog for the AMPS platform exceeded S$400 million, driven by orders from its AI/HPC fabless customer and the foundry client. Industry projections cited by AEM estimate global test equipment sales will grow to US$15.3 billion in 2026 and US$20.8 billion by 2028, with test accounting for roughly 9% of total semiconductor equipment spending.

**Stakeholder Perspectives**

AEM chief executive officer Samer Kabbani attributed the company’s sequential growth to the rising complexity of AI and HPC chips, which require precise thermal control, parallel testing, and full-stack integration—capabilities where AEM holds a competitive edge.

“As devices become more power-dense and harder to test, customers are increasingly turning to our solutions,” Kabbani said in a statement. He outlined five growth pillars for the company: personal computers and foundries, AI and HPC, memory, OSAT providers, and contract manufacturing.

Kabbani highlighted AEM’s long-term partnership with Advanced Semiconductor Engineering (ASE), a key OSAT player with operations in Malaysia, as a driver of future expansion. ASE’s Malaysia facilities, which include advanced packaging and test lines, are critical to AI chip production cycles.

Industry observers in Malaysia welcomed AEM’s results as a positive signal for the local supply chain. “Demand for test equipment is a leading indicator of semiconductor activity, and AEM’s growth suggests sustained investment in AI and HPC,” said a semiconductor analyst based in Kuala Lumpur, who requested anonymity.

**Forward Outlook**

AEM’s upgraded guidance and expanding backlog point to continued momentum, though analysts caution that supply chain bottlenecks and geopolitical risks could pose challenges. The company’s focus on recurring revenue streams—such as configurables and collaterals—aims to stabilize margins as AI chip production matures.

For Malaysia, AEM’s performance underscores the country’s growing role in the AI chip value chain, from assembly to advanced test. With the government pushing for higher-value segments, including test and packaging, local firms may see increased collaboration with global equipment suppliers like AEM.

As the semiconductor industry braces for further AI-driven demand, AEM’s half-year results serve as a bellwether for Southeast Asia’s tech ecosystem, where Malaysia remains a linchpin in the global supply network.

Details not yet available on AEM’s specific operations or partnerships in Malaysia.

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