Southeast Asia needs to expand semiconductor production, global trade group SEMI says

Southeast Asian countries should aim to build more semiconductor fabrication plants in the coming decade to help the sector and diversify and reduce supply risks, the head of global chip industry group ‌SEMI ⁠said on ⁠Tuesday.

SEMI chief executive Ajit Manocha said there were ​64 new fabs expected to become operational in Asia by ​2029, but just six of them were in the continent's southeast, with the rest concentrated ​mostly in China and Taiwan.

The ⁠lack of ‌geographical diversity poses challenges to the ​industry ​given geopolitical issues and other vulnerabilities, ⁠Manocha told an industry forum in Kuala ​Lumpur, without going into specifics.


"We want ​to see more hubs to come in the like-minded countries, more hubs to come in place, so that we de-risk the vulnerabilities," he said, adding that it was "really important ‌that Southeast Asia steps up".

SEMI represents around 3,000 member companies worldwide, including major ​design firms ​and manufacturers ⁠such as Intel and AMD.

Recent disruptions to the global semiconductor supply chain, including the COVID-19 pandemic as well as export restrictions arising from U.S.-China trade tensions, have raised concerns about the risks of concentrating advanced chip manufacturing in a few Asian regions.