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SE Asia Urged: Build More Chip Fabs Now!
5 May
Summary
- Southeast Asia needs more semiconductor fabrication plants.
- Only six of 64 new Asian fabs by 2029 are in Southeast Asia.
- Geographic diversity is crucial to de-risk chip supply chains.
Southeast Asian nations are being urged to prioritize the construction of additional semiconductor fabrication plants over the next ten years. This strategic move aims to enhance the industry's geographic diversification and mitigate critical supply chain risks.
Ajit Manocha, the head of global chip industry group SEMI, highlighted that while Asia is set to gain 64 new operational fabs by 2029, a mere six are projected for Southeast Asia. The majority are concentrated in China and Taiwan, presenting a significant vulnerability.
Manocha stressed the importance of developing more manufacturing hubs in like-minded countries to reduce the industry's exposure to geopolitical tensions and other disruptions. He stated that it is crucial for Southeast Asia to enhance its role in global chip production.
Recent global semiconductor supply chain disruptions, exacerbated by the COVID-19 pandemic and U.S.-China trade disputes, have amplified concerns about the concentration of advanced chip manufacturing in limited Asian regions. This situation underscores the necessity for greater geographical distribution.
