South East Asian countries should strive to build more semiconductor manufacturing plants over the next decade to support the sector, diversify, and reduce supply chain risks, the leader of the global industry group SEMI said on Tuesday.
SEMI’s general director, Ajit Manocha, pointed out that 64 new production units are expected to become operational in Asia by 2029, but only six of them would be located in the southeast of the continent, with the rest mainly concentrated in China and Taiwan.
The lack of geographical diversity poses challenges for the industry given geopolitical issues and other vulnerabilities, Mr. Manocha said at a sector forum in Kuala Lumpur, without going into specifics.
‘We want to see more poles develop in countries sharing the same orientations, in order to limit risks associated with vulnerabilities,’ he said, adding that it was ‘crucial for Southeast Asia to step up the pace.’
SEMI represents around 3,000 member companies worldwide, including design and manufacturing giants such as Intel and AMD.
Recent disruptions in the global semiconductor supply chain, including the COVID-19 pandemic and export restrictions stemming from trade tensions between the United States and China, have raised concerns about the risks of concentrating the production of advanced chips in a limited number of Asian regions.
(Reporting by Danial Azhar; Editing by Rozanna Latiff; Editing by David Stanway)
