SEMI is urging Southeast Asian nations to accelerate investment in semiconductor manufacturing to reduce reliance on concentrated production hubs.
Speaking at an industry forum, CEO Ajit Manocha emphasized that expanding fabrication capacity across more regions is essential to strengthening global supply chain resilience.

Production Concentration Raises Concerns

Out of 64 semiconductor fabrication plants expected to become operational in Asia by 2029, only six are planned for Southeast Asia.
The majority of new capacity remains concentrated in key markets such as China and Taiwan, increasing exposure to geopolitical risks and potential supply disruptions.
This imbalance has become a growing concern for the global technology ecosystem.

Lessons From Recent Disruptions

Recent events have highlighted vulnerabilities in the semiconductor supply chain.
The COVID-19 pandemic and ongoing U.S.-China trade tensions disrupted chip availability worldwide, affecting industries from automotive to consumer electronics.
These challenges have reinforced the need for broader geographic distribution of manufacturing capabilities.

Global Industry Backing

SEMI represents approximately 3,000 companies worldwide, including major chipmakers such as Intel and Advanced Micro Devices.
The organization’s call reflects a broader industry consensus that diversification is necessary to support long-term growth and stability in semiconductor supply.

Strategic Opportunity for Southeast Asia

For Southeast Asian countries, expanding semiconductor manufacturing presents both an economic opportunity and a strategic advantage.
Developing new fabrication hubs could attract foreign investment, create high-skilled jobs, and position the region as a key player in the global technology value chain.

Outlook

As demand for semiconductors continues to grow—driven by artificial intelligence, cloud computing, and advanced electronics—regional diversification will likely become a central theme in industry strategy.
Southeast Asia’s ability to scale production capacity could play a crucial role in shaping the future resilience of the global chip supply chain.