ASEAN Semiconductor Market Size and Forecast by Product Type, Node Type, Application, Distribution Channel, and Country: 2019-2032

ASEAN Semiconductor Market Growth and Performance

• In 2023, the ASEAN semiconductor market size reached US$ 45.90 Billion.
• The semiconductor market in ASEAN is projected to expand at a CAGR of 14.5% throughout the forecast period to reach US$ 154.98 Billion in 2032.

ASEAN Semiconductor Market Outlook

The ASEAN semiconductor market is rapidly expanding, driven by increasing global demand for semiconductor components across industries such as automotive, telecommunications, AI, and consumer electronics. The region is emerging as a key player in the global semiconductor supply chain, leveraging its manufacturing capabilities, skilled workforce, and strategic trade agreements to attract investments and enhance production capacity.

The ASEAN semiconductor market outlook is highly promising, with the industry projected to play a crucial role in the global semiconductor supply chain amid rising geopolitical tensions. Key developments shaping the outlook include:

• Increased foreign direct investment (FDI) in semiconductor manufacturing and assembly.
• Government-backed initiatives in key ASEAN countries, such as Malaysia’s New Industrial Master Plan (NIMP) 2030 and Thailand’s $22.7 billion semiconductor investment incentives.
• Growing trade agreements, including ASEAN’s participation in the Regional Comprehensive Economic Partnership (RCEP) to enhance trade and technology exchange.

ASEAN Semiconductor Market Growth

The ASEAN semiconductor market growth has been significant, with exports rising from $52.3 billion in 2017 to $165 billion in 2023. The region's growing role in the semiconductor industry is fueled by:

• ASEAN's semiconductor exports reaching over $220 billion in 2022, highlighting its increasing importance in the global supply chain.
• Investments of $18.3 billion in 148 semiconductor deals from 2020 to Q2 2023, with private equity firms contributing $2.7 billion and venture capital investments totalling $1.5 billion.
• Major multinational corporations such as Intel, Samsung, Infineon, and Micron expanding their presence in ASEAN countries.

ASEAN Semiconductor Market Trends

Several ASEAN semiconductor market trends are driving the region’s growth:

• Shift toward high-value manufacturing: ASEAN countries are focusing on increasing the value-added in semiconductor production through investments in wafer fabrication, IC design, and advanced packaging.
• Rise of AI and IoT adoption: Increased semiconductor demand is driven by AI applications, autonomous vehicles, and IoT-enabled smart devices.
• Strong M&A activity: Mergers and acquisitions accounted for 67% of semiconductor transactions in the region, highlighting consolidation efforts to strengthen market positions.
• Expansion of semiconductor hubs: Malaysia, Vietnam, and Thailand are positioning themselves as leading hubs for semiconductor assembly, testing, and packaging (ATP) services.

ASEAN Semiconductor Market Competitive Landscape

The ASEAN semiconductor market competitive landscape is shaped by major investments, government policies, and foreign collaborations. Key competitive factors include:

• Malaysia’s dominance in ATP services, accounting for X3% of the global semiconductor market.
• Singapore’s stronghold in wafer fabrication, representing X1% of the global semiconductor market share.
• Vietnam’s emergence as a semiconductor powerhouse, attracting investments from Intel, Samsung, Qualcomm, and Marvell.
• Thailand’s aggressive semiconductor investment policies, fostering a $22.7 billion semiconductor development initiative.

ASEAN Semiconductor Market Development

The ASEAN semiconductor market development is focused on building a resilient and competitive industry through strategic investments, technological advancements, and international collaborations. Key initiatives include:

• Strengthening regional semiconductor policies, promoting public-private partnerships to support R&D and workforce development.
• Investing in digital technologies and sustainability, integrating semiconductor advancements with electric vehicle (EV) and clean energy initiatives.
• Enhancing manufacturing capacity, with Intel’s $7 billion expansion in Malaysia and Thailand’s investment in semiconductor R&D.
• Optimizing trade agreements and supply chain resilience, ensuring ASEAN maintains a competitive edge in semiconductor production.

ASEAN Semiconductor Market Scope

ASEAN Semiconductor Industry: Regional Coverage