AEM Holdings Ltd (SGX: AWX) and Venture Corporation Ltd (SGX: V03) are two locally listed technology manufacturers on the Singapore Exchange.
When comparing the duo, you’re looking at two very different horses in the Singapore tech scene. While both are “tech manufacturers”, Venture Corporation and AEM operate at opposite ends of the risk-reward spectrum.
Let’s take a closer look.
AEM Holdings: A Semiconductor Play
AEM Holdings Ltd, or AEM, is a provider of test solutions for semiconductors and electronics.
This niche focus resulted in AEM’s turnover rising at a compound annual growth rate (CAGR) of 23.4% from S$70.4 million in 2016 to S$380.4 million in 2024.
In the same time period, net income posted slower growth, rising at a CAGR of around 12% from S$4.7 million to S$11.4 million.
Looking forward, AEM’s growth is likely to come from the increasing demand for testing solutions fueled by AI-driven advancements in semiconductors. Combine this with the potential of new customer partnerships, and AEM might be ready for a strong 2026.
The key strength of the company revolves around its proprietary testing system: the system-level test (SLT), which is deemed superior to its competitors.
That said, investors need to understand that the company’s revenue is highly cyclical, as demand for its test solutions is closely tied to the semiconductor capital expenditure cycle, which can fluctuate wildly.
This cyclicality was evident in the sharp decline in revenue and earnings between 2022 and 2024, which dropped 56.2% and 91%, respectively.
Furthermore, a large portion of AEM’s financials is contributed by a single customer, Intel (NASDAQ: INTC), which accounts for an estimated 60 to 70% of AEM’s revenue.
This creates a highly concentrated customer risk issue; should Intel decide to work with another test solutions provider, AEM would suffer greatly.
Venture Corporation Limited: Tech Manufacturer with Stable Dividends
On the other side of the ring, we have Venture Corporation, which has a broader focus, being an electronics manufacturing services (EMS) company catering to a wide variety of industries.
These sectors include MedTech, Life Sciences, and Electronics.
This broad-based focus results in better stability compared to AEM, with its top line ranging from a high of S$4 billion to S$2.6 billion over the past decade.
Net income rose at a steady clip of 5.2% CAGR over the same time frame to S$245 million 2024.
This steady growth in net profit is distributed to shareholders in the form of a consistent annual dividend, rising from S$0.50 in 2016 to S$0.75 in FY2024.
Venture Corporation also has a robust balance sheet, carrying zero debt and a cash position exceeding S$1 billion.
Looking forward, Venture Corporation’s diversified business is well-placed to benefit from the ongoing outsourcing trend, where companies look to hand over their manufacturing responsibilities to specialist EMS partners to strengthen their supply chains.
Some of the risks facing Venture Corporation include heightened competition, which could lead to lower margins.
Additionally, the company is still exposed to the general technology spending cycle.
Head-to-Head Comparison
When comparing the two companies, Venture Corporation offers top-line stability, while AEM provides greater growth potential — though the latter remains highly subject to the “gyrations” of its cyclical industry.
On a dividend-paying front, AEM has stopped paying a dividend as its profits fell, while Venture Corporation, as mentioned above, rewards shareholders with a consistent annual dividend.
While both companies are in the technology sector, the growth drivers for each company differ significantly: AEM is exposed to the semiconductor test cycle, while Venture Corporation is exposed to the broad technology outsourcing cycle.
In short, AEM is more volatile while Venture Corporation offers better stability.
Get Smart: Which Is the Better Buy?
The global technology demand outlook looks promising for 2026, led by robust expected growth in AI and cloud.
Strong growth in these sub-sectors will result in greater demand for semiconductors, directly benefitting AEM’s test solutions business.
Meanwhile, Venture Corporation remains well-positioned to capture the ongoing structural shift towards EMS sourcing.
Ultimately, the choice between the two comes down to your risk appetite.
AEM offers an aggressive growth profile, linked to the semiconductor cycle, but it carries significant cyclical risk.
On the other side, Venture Corporation offers greater stability, and consistent dividends, albeit with slower growth potential.
Your choice of including technology manufacturing exposure to your portfolio boils down to which factor you value more.
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Disclosure: Wilson.H does not own shares in any of the companies mentioned.
