ASEAN Semiconductor Market Size, Share & Industry Analysis, By Component (Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU, Sensors, and Others (DSP)), By Application (Networking & Communications, Data Processing, Industrial, Consumer Electronics, Automotive, and Government), and Country Forecast, 2025 – 2032

The ASEAN semiconductor market size was valued at USD 95.91 billion in 2024. The market is projected to grow from USD 109.62 billion in 2025 to USD 212.33 billion by 2032, exhibiting a CAGR of 9.9% during the forecast period.

The semiconductor industry consists of the design, manufacturing, and distribution of semiconductor materials and devices, which are essential for electronic products. ASEAN is a key global semiconductor hub, mainly for assembly, testing, and packaging (ATP). ASEAN countries are rapidly expanding their semiconductor ecosystems through foreign investments, AI-driven manufacturing, and government incentives.

The market is rapidly evolving, driven by global supply chain shifts, increasing local investments, and rising demand for artificial intelligence (AI), Internet of Things (IoT), and automotive chips. Further, the growth of electric vehicles (EVs) in Thailand, Indonesia, and Vietnam is fueling the demand for automotive chips.

For instance, Thailand’s EV manufacturing boom is increasing demand for AI-powered automotive chips. Moreover, the market is dominated by established key players and emerging players, such as Samsung, Taiwan Semiconductor Manufacturing Company, Micron Technology, Inc., SK Hynix Inc., NXP Semiconductor N.V., and Rohm Co., Ltd. These players are constantly pursuing collaborations and partnerships and are strategically acquiring domestic market players with promising performance in their respective markets.

• For instance, in December 2024, The Indonesian government engaged in a partnership with Arizona State University (ASU) in the U.S. Through this partnership, Indonesia aimed to advance workforce development, research and development activity, education, and faculty and student exchanges. Also, this collaboration will strengthen its role in the global semiconductor supply chain.

Global semiconductor supply chains are relatively unaffected by the COVID-19 pandemic. The major chip production hubs of South Korea and Taiwan have handled the COVID-19 crisis relatively well and avoided significant supply chain disruptions. However, a strategic review is necessary due to the concentration of semiconductor production worldwide in a small number of nations and the potential for future shocks. Vietnam had a relatively low impact of the pandemic, owing to the growing demand for high processing power for mobile and other computing devices, which also contributes to the growth of the semiconductors market in the consumer electronics segment.

Supply Chain Analysis

The ASEAN region has become a major manufacturing hub in Asia. With the implementation of the ASEAN Economic Community (AEC) integration plan, the region aims to boost global and intra-regional trade while attracting multinational organizations to invest in emerging semiconductor technologies and their production. Key market players in the ASEAN region opt for four important principles of supply chain management to maintain core intellectual property rights while improving their market position.

Following are the four principles of supply chain management.

• Code Compliance
• Risk Assessment
• Audit Participation
• Continuous Improvement

Semiconductor manufacturers across the ASEAN countries are strengthening the entire supply chain ecosystem by improving procurement, design, manufacturing, and testing processes. These improvements ensure that the final product meets the end consumer's needs.

IMPACT OF GENERATIVE AI

Increasing Demand for Enhanced Anomaly Detection Aids Market Growth

Generative AI is transforming the ASEAN semiconductor industry by improving chip design, manufacturing, automation, and supply chain efficiency. Generative AI enables faster creation of AI processors, IoT chips, and automotive semiconductors. Furthermore, AI-driven chip design reduces development time and enhances energy efficiency. ASEAN firms can leverage AI to move beyond chip assembly and packaging into high-end design.

• For instance, Malaysia’s semiconductor firms are adopting AI-powered EDA (Electronic Design Automation) tools for chip optimization. This tool plays an important role in boosting the chip manufacturing process.

ASEAN governments are exploring AI-driven semiconductor risk management solutions to enhance the security of the semiconductor supply chain.

• For instance, in November 2023, Industry experts predicted that Gen AI chip sales would be more than USD 50 billion in 2024.

Moreover, Singapore is further boosting AI activities by investing more than USD 1 billion over the next five years into industry development and AI computing. The country’s government supports companies looking to use Gen AI to enhance their productivity and meet their business needs.

MARKET DYNAMICS

Market Drivers

Growing Use of Data Processing Chips in Smart and Driverless Vehicles Boosts the Market in ASEAN

Smart and autonomous vehicles require AI-driven processors, GPUs (Graphic Processing Units), SoCs (System-on-Chip), and advanced sensors. ASEAN’s growing automotive industry (Thailand, Indonesia, Malaysia, and Vietnam) is increasing demand for locally sourced automotive chips. Expansion of EV (electric vehicle) production accelerates the ASEAN semiconductor market growth.

• For instance, Thailand, the “Detroit of Asia,” promotes EV and smart vehicle manufacturing, which plays an important role in attracting semiconductor investments across the country.

Global chipmakers are expanding semiconductor assembly and packaging plants in ASEAN due to lower costs and supply chain diversification. Furthermore, ASEAN nations are offering tax incentives, subsidies, and policy support for semiconductor and EV industries, which attracts global players for investments in ASEAN’s semiconductor sector.

• For instance, Indonesia is collaborating with TSMC and other foundries to develop local chip manufacturing for EVs.

Market Restraints

Lack in Intellectual Property (IP) Protection Rights Obstructs Semiconductor Growth in ASEAN

The semiconductor industry relies heavily on patents, trade secrets, and proprietary designs, making Intellectual Property (IP) protection crucial. Intellectual Property protection plays an essential role in offering IP owners a competitive edge and secured return on investment for innovations. Patent infringement and IP theft are major concerns, leading to unauthorized replication of chip designs. Counterfeit semiconductor components, often of lower quality, damage brand reputation and market trust. The lack of IP enforcement discourages foreign semiconductor firms from setting up R&D and advanced chip fabrication in ASEAN.

Furthermore, ASEAN countries rely more on-chip assembly, packaging, and testing (APT) rather than high-end design and fabrication. For example, Malaysia and Thailand focus on semiconductor assembly. However, the lack of strong IP laws slows growth in chip design sectors, hindering semiconductor market growth in the region.

Market Opportunities

Emerging of 5G Network Technology Creates Lucrative Market Opportunity

Wireless and 5G technologies are expected to bring about a huge transformation in the market. These technologies are expected to enable a wide variety of functions, ranging from autonomous applications to Internet of Things (IoT) and connected applications. Examples of applications for 5G and wireless technologies include smart cities, intelligent cars, and smartphones. 5G and wireless technologies rely heavily on advanced optical sensors, LEDs, and associated technologies, as these are essential for fully deploying the technology needed for smart cities and factories, and fully autonomous vehicles. The consumption of semiconductors in automotive electronic components includes infotainment, safety, navigation, and fuel efficiency, and their application is expected to increase in the coming years. Connected technologies enhance security, energy savings, and applications of IoT devices and hence are expected to create an extended market opportunity for the ASEAN semiconductor market players in the coming years.

ASEAN Semiconductor Market Trends

Technologically Differentiation through Custom-made Chips to Propel Market Growth

Tesla, Apple, Amazon, and Google are just a few of the tech giants producing their ASIC chips designed specifically for their products. This distinguishes them from their rivals and gives them more control over how software and hardware are integrated.

• For instance, Amazon is currently employing its own Graviton processors. In a similar vein, Google recently unveiled its new Pixel 6 and Pixel 6 Pro smartphones that make use of Tensor, the company's first AI-enabled chip. Additionally, Apple's newly released 2021 MacBook Pros utilized the company's own M1 chips.

All of these businesses believe that, rather than relying on the same generic chips as their rivals, they can achieve technology differentiation by making chips that are tailored to the particular requirements of their applications. In addition, major tech companies are rethinking where they source their chips from and moving faster to make their own due to the ongoing global shortage of chips and supply chain disruptions. Thus, this shift is expected to fuel market growth during the forecast period.

SEGMENTATION ANALYSIS

By Component

Memory Devices Led due to Their Extensive Use in Consumer Electronics

Based on component, the market is classified into memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others (DSP).

Memory devices captured the largest ASEAN semiconductor market share in 2024, as they are widely used in electronic devices such as smartphones, flat panel displays, LED TVs, and aerospace and military systems. These devices consist of DRAM, i.e., Dynamic Random Access Memory, which is a common type of memory used to temporarily store information in computers, smartphones, tablets, and flash memory that retains data even when the power is turned off. This market has witnessed rapid growth in ASEAN countries, with semiconductors emerging as the fundamental building blocks of most modern technologies.

Logic devices are expected to grow at the highest CAGR during the forecast period, as they are increasingly used to control the operation of electronic devices by processing digital data. In 2023, ASEAN’s digital economy was recorded at USD 259 billion and it is projected to reach USD 1 trillion by 2030. Additionally, these logic devices address the demand for tight conditions such as low jitter, high data rates, and improved signal integrity while providing essential functions such as flip-flops and logic gates.

By Application

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Networking & Communications Segment Dominated due to Rising Adoption of Novel Technologies in Businesses

Based on application, the market is divided into networking & communications, data processing, industrial, consumer electronics, automotive, and government.

Networking & communications captured the largest market share in 2024. At present, deregulation is prevalent in most developed countries, and this trend is expanding to developing countries, leading to accelerated development and deployment of communication technologies. The adoption of new technologies by businesses, governments, and consumers is increasing and driving market expansion for network & telecommunication in ASEAN countries. For example, the internet, with its pervasive reach, is creating opportunities for both system suppliers and semiconductor vendors.

Data processing is expected to grow at the highest CAGR in the coming years owing to the rising amount of data generated across ASEAN countries and the need to overcome the challenges associated with conventional data storage methods. According to industry expert analysis, integrating AI techniques into data center applications will enable over 20% of new servers to include workload accelerators by 2027. These factors play a crucial role in fueling the segment growth during the forecast period.

ASEAN SEMICONDUCTOR MARKET REGIONAL OUTLOOK

ASEAN

In ASEAN, countries such as Singapore and Malaysia are playing a significant role in the supply chain of the global semiconductor industry, accounting for 11% and 7%, respectively. Additionally, the region offers several advantages, such as growing manufacturing capabilities, supportive government policies, and a skilled workforce that attracts investments in the region. Thailand's government policies, such as subsidies for local manufacturers and tax incentives for foreign investors, are helping to attract major players operating in the market to invest in the country.

• For instance, in August 2022, The CEO of Samsung Electronics announced an investment of USD 850 million to manufacture semiconductor components in Thailand's Nguyen province after meeting with Vietnamese Prime Minister Pham Minh Chinh.

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Singapore

Singapore held the largest semiconductor market share in 2024, as it is the only country in Southeast Asia that manufactures integrated circuits (ICs) and has the most complete semiconductor supply chain in the region. In addition, most of the devices used around the world are designed and manufactured in the country. These factors play an important role in fueling the market growth across Singapore.

Vietnam

Vietnam is projected to grow at the highest CAGR during the forecast period, owing to increasing investment related to semiconductor industries across the country. For instance, In October 2023, Samsung invested USD 22.4 billion into Vietnam’s high-tech sector, and Hana Micron Vina plans to invest USD 1 billion in order to propel the country’s chip production by 2025. Also, In June 2024, Amkor Technologies invested USD 1.6 billion to set up a facility in Vietnam.

Competitive Landscape

KEY INDUSTRY PLAYERS

Key Players Focus on Partnership and Acquisition Strategies to Expand Their Services across ASEAN Countries

Key players are focusing on expanding their geographical presence by presenting industry-specific services. Major players are strategically focusing on acquisitions and collaborations with regional players to maintain dominance across regions. Top market participants are launching new solutions to increase their consumer base. An increase in constant R&D investments for product innovations is enhancing market expansion. Hence, top companies are rapidly implementing these strategic initiatives to sustain their competitiveness in the market.

List of Key ASEAN Semiconductor Companies Profiled

• Samsung (South Korea)
• Toshiba Corporation (Japan)
• Rohm Co., Ltd. (Japan)
• Taiwan Semiconductor Manufacturing Company (TSMC) (Taiwan)
• Micron Technology, Inc. (U.S.)
• SK HYNIX INC. (South Korea)
• QUALCOMM Incorporated (U.S.)
• Texas Instruments Incorporated (U.S.)
• Broadcom, Inc. (U.S.)
• NXP Semiconductors N.V. (Netherlands)
• Nvidia Corporation (U.S.)
• Renesas Electronics (Japan)
• Intel Corporation (U.S.)
• Next Electronics (U.S.)
• Maxim Integrated Products, Inc. (U.S.)
• United Microelectronics Corporation (UMC) (Taiwan)
• Siltronic (Germany)
• Soitec (France)
• Ardentec (Taiwan)
• Vanguard International (U.S.)

……and more

KEY INDUSTRY DEVELOPMENTS

• December 2024: ROHM announced a collaboration with TSMC on the expansion and volume creation of GaN (gallium nitride) power devices for electric vehicle applications. The alliance incorporates the device development technology of ROHM with the GaN-on-silicon process technology of TSMC to fulfill the increasing requirements for enhanced high-frequency and high-voltage properties over silicon for power devices.
• July 2024: Samsung Electronics announced the launch of Turnkey Semiconductor Solutions along with leveraging a 2-nanometer (nm) foundry procedure and the progressive 2.5D packaging mechanisms Interposer-Cube S (I-Cube S) to Preferred Networks, an AI company in Japan. By using Samsung’s foundry and progressive packaging solutions, Preferred Networks aims to design powerful AI accelerators that fulfill the changing requirements for computing power determined by generative AI.
• July 2024: TSMC-backed Vanguard and NXP Semiconductors collaborated to build a wafer chip plant worth USD 7.8 billion in Singapore. TSMC-funded Vanguard International Semiconductor Corp and NXP started constructing the service in the second half of the year, with production beginning in 2027.
• June 2024: Toshiba announced its plans to invest USD 640 million (Yen 100 billion) in power semiconductors. The firm planned to increase production capability at its factories in Thailand, Hyogo, and Ishikawa in response to increasing demand over global decarbonization determinations. With this investment the company aimed to boost sales of chips vital for industrial devices and electric vehicles.
• April 2024: Micron Technology announced an extended collaboration with Silvaco, which includes securing a USD 5.0 million investment from Micron. This investment reflects their alliance to advance Silvaco’s FTCO digital twin modeling tools. Silvaco provides EDA software, TCAD, and SIP solutions that support semiconductor development and AI through software and innovation.

INVESTMENT ANALYSIS AND OPPORTUNITIES

Key players operating in the market, such as Samsung, Toshiba Corporation, Rohm Co., Ltd, TSMC, Micron Technology, Inc., SK Hynix Inc., and NXP Semiconductor N.V. are striving for excellence in the market by focusing on strong manufacturing and technology foundation, investment in an extended portfolio of embedded processing products, strong sales force, diversity and longevity of products and end-users. Major manufacturers are continuously developing memory semiconductor products in anticipation of demand for advanced information technology (IT), AI, 5G, 3D integration technology, and other technologically advanced products. These factors are expected to create a lucrative opportunity for the market growth. For instance,

• In February 2025, Samsung Electronics plans to invest USD 23.2 billion in Vietnam. Through this investment, the company becomes the largest foreign direct investor aiming to enhance artificial intelligence (AI), the semiconductor industry, and digital transformation in Vietnam.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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