PETALING JAYA: Improvement in price adjustments and growing exposure to artificial intelligence data centres (DCs) within analogue semiconductors are positive factors supporting the local technology sector, moving forward.

Hong Leong Investment Bank (HLIB) Research in a note to clients said channel checks suggest selected outsourced semiconductor assembly and test (Osat) companies are already engaging customers on potential price increases from the second quarter of financial year 2026 (2Q26), with a higher likelihood of successful pass-through supported by tight global back-end capacity and ongoing China Plus One tailwinds.