Semiconductor Firms Have Targeted APAC Growth
Industry leaders are pivoting toward the Asia-Pacific region to meet rising global demand for chips.
Updated on Oct. 9, 2026 in Semiconductors
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Is the concentration of semiconductor production in the Asia-Pacific region good for the global economy?
Nearly 80% of surveyed semiconductor industry stakeholders have identified the Asia-Pacific region as the primary site for future demand growth. More than one-third of these firms plan to expand their business operations into these markets over the next three years.
Why it matters
The rapid development of artificial intelligence and high-performance computing has created a global surge in semiconductor demand. Companies are responding by deepening their integration into the Asia-Pacific supply chain to secure capacity and diversify sourcing.
Taiwan currently accounts for 60% of worldwide foundry output, while Southeast Asia remains a critical hub for assembly and packaging. Stakeholders note that the region provides an integrated ecosystem for the entire semiconductor lifecycle.
The players
SEMICON
This trade show serves as a major international platform for semiconductor industry stakeholders to discuss manufacturing trends and market growth.
The details
Industry leaders are looking to bolster operations across Japan, South Korea, China, and Southeast Asia to capitalize on the region's existing manufacturing dominance. This geographic focus supports the long-term infrastructure requirement of building more than 2,000 data centers globally between 2026 and 2035.
Timeline
Over 2,000 data centers are expected to be built between 2026 and 2035.
More than one-third of companies plan to expand into APAC over the next three years.
The Tech Race
The push into APAC follows the rise of artificial intelligence and high-performance computing as semiconductor demand drivers. This expansion marks a strategic shift to replace aging or geographically siloed supply chains with a more integrated regional ecosystem.
Users can expect higher availability of high-performance hardware as supply chains stabilize and expand capacity. This industrial shift aims to prevent future shortages by aligning production centers more closely with the infrastructure demands of modern AI technology.
The takeaway
The move toward APAC indicates that the future of tech manufacturing is becoming increasingly regionalized and specialized. Investors and consumers should monitor these hubs as they will likely dictate the price and pace of AI hardware rollouts.
Further reading
For more on the current state of global production, see our analysis of Semiconductors.
Live Poll
Is the concentration of semiconductor production in the Asia-Pacific region good for the global economy?
