SEMI: Southeast Asia Should Expand Semiconductor Production to Diversify Industry and Reduce Risk
The CEO of the Semiconductor Equipment and Materials International (SEMI) called on Southeast Asian nations to expand semiconductor production facilities. This aims to geographically diversify production in Asia to address geopolitical risks and supply chain vulnerabilities.
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- 📰 Published: May 5, 2026 at 18:14
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KUALA LUMPUR (CNA) -- Ajit Manocha, CEO of the Semiconductor Equipment and Materials International (SEMI), said today that Southeast Asian countries should strive to build more semiconductor wafer fabs in the next decade to help diversify the industry and reduce supply risks.
Reuters reported that Manocha noted at an industry forum in Kuala Lumpur that out of the 64 new wafer fabs expected to begin operations in Asia by 2029, only six will be located in Southeast Asia, with most others concentrated in China and Taiwan.
While Manocha did not elaborate on specific details, he emphasized that the lack of geographical diversity poses a challenge to the semiconductor industry given geopolitical issues and other vulnerabilities.
“We hope to see like-minded countries establish more hubs to mitigate risks and vulnerabilities,” he said, adding that “it is crucial for Southeast Asia to step up.”
SEMI represents approximately 3,000 member companies worldwide, including Intel and AMD.
In recent years, the global semiconductor supply chain has faced successive disruptions, including the impact of COVID-19 (2019 novel coronavirus disease) and export restrictions arising from the US-China trade standoff, all of which have raised concerns about the risks posed by the high concentration of advanced chip manufacturing in a few Asian regions. (Compiled by Liu Shu-chin) 1150505
Reuters reported that Manocha noted at an industry forum in Kuala Lumpur that out of the 64 new wafer fabs expected to begin operations in Asia by 2029, only six will be located in Southeast Asia, with most others concentrated in China and Taiwan.
While Manocha did not elaborate on specific details, he emphasized that the lack of geographical diversity poses a challenge to the semiconductor industry given geopolitical issues and other vulnerabilities.
“We hope to see like-minded countries establish more hubs to mitigate risks and vulnerabilities,” he said, adding that “it is crucial for Southeast Asia to step up.”
SEMI represents approximately 3,000 member companies worldwide, including Intel and AMD.
In recent years, the global semiconductor supply chain has faced successive disruptions, including the impact of COVID-19 (2019 novel coronavirus disease) and export restrictions arising from the US-China trade standoff, all of which have raised concerns about the risks posed by the high concentration of advanced chip manufacturing in a few Asian regions. (Compiled by Liu Shu-chin) 1150505