South East Asian countries should strive to build more semiconductor manufacturing plants in the next decade in order to support the sector, diversify, and reduce supply chain risks, the head of global industry group SEMI said on Tuesday.
SEMI CEO Ajit Manocha explained that 64 new production units are expected to be operational in Asia by 2029, but only six of them will be located in Southeast Asia, with the rest primarily concentrated in China and Taiwan.
The lack of geographical diversity poses challenges for the industry given geopolitical issues and other vulnerabilities, Mr. Manocha noted at a sector forum in Kuala Lumpur, without going into detail.
‘We want to see more poles developing in countries with shared orientations, in order to limit risks related to vulnerabilities,’ he said, adding that it was ‘crucial for Southeast Asia to step up its game.’
SEMI represents around 3,000 member companies worldwide, including design and manufacturing giants like Intel and AMD.
Recent disruptions in the global semiconductor supply chain, including the COVID-19 pandemic as well as export restrictions stemming from trade tensions between the United States and China, have raised concerns about the risks of a concentration of advanced chip production in a limited number of Asian regions.
(Reporting by Danial Azhar; Editing by Rozanna Latiff; Editing by David Stanway)
