ASEAN Semiconductor Market Size Analysis:

The ASEAN Semiconductor Market size was valued at USD 33.19 Billion in 2024 and is expected to grow to USD 52.9 Billion at a CAGR Of 5.98% By forecasts 2025-2032. India is actively pursuing semiconductor self-sufficiency with a substantial Rs. Investment proposal valued at 2.3 lakh crore (equal to USD 30 billion). Intending to be a worldwide hub for electronics manufacturing, the plan sets aside more than USD 10 billion to develop a strong local semiconductor and display industry. It provides attractive rewards, such as up to 50% financial aid for new factories, and promotes a design-focused strategy with a Rs. Incentive program linked to design amounting to 1500 crore rupees.

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ASEAN Semiconductor Market Size and Forecast:

• Market Size in 2024: USD 33.19 Billion

• Market Size by 2032: USD 52.9 Billion

• CAGR: 5.98% (from 2025 to 2032)

• Base Year: 2024

• Forecast Period: 2025–2032

• Historical Data: 2021–2023

The India Semiconductor Mission will supervise this ambitious strategy, aiming to establish at least two new greenfield fabs per sector and support the growth of 20 design companies with more than Rs. Revenue of 1500 crore. India's goal by 2025 is to achieve digital sovereignty, create jobs, and build a USD 1 trillion digital economy by establishing high-tech clusters and drawing in investments. This strategic decision positions India as a possible rival in the ASEAN Semiconductor market, which is growing because of increasing demand for electronics and government support.

ASEAN Semiconductor Market Growth

• Indonesia emerging as a semiconductor hub: Leveraging abundant nickel resources and the US CHIPS Act, Indonesia aims to become a major player in the global semiconductor industry.

• Major investments driving growth: USD 5 billion semiconductor plant in Batam, specialized training center in Bandung, and collaborations with LG, Sharp, NEC, and UTAC strengthen the supply chain.

• US support and strategic partnerships: USD 131 million investment, trade missions, and digital infrastructure assistance boost Indonesia’s semiconductor capabilities and ASEAN market position.

• Battery material dominance fueling EV and electronics demand: Indonesia produced 1.6 million tonnes of nickel in 2022, supporting electric vehicle battery production and semiconductor demand.

• Infrastructure challenges in ASEAN: Limited power reliability, transportation inefficiencies, and high logistics costs constrain semiconductor growth in the region.

• Talent shortage impacting industry expansion: Vietnam faces a deficit of skilled engineers, with only 20% of semiconductor workforce demand met, slowing industry development.

• Government initiatives promoting sector growth: Training programs for IC design engineers and regulatory support aim to address talent and infrastructure gaps, enhancing ASEAN’s semiconductor market potential.

ASEAN Semiconductor Market Drivers:

• ASEAN's expansion in the semiconductor market is fueled by the development of electronics, advantageous policies, and a prime location.

Indonesia is in the process of strategically shifting from being a country abundant in resources to becoming a major player in the global semiconductor industry. Collaborating with the US through the CHIPS Act, the nation utilizes its extensive nickel resources to develop a strong semiconductor industry.

Indonesia is looking to draw in big tech companies such as LG with a USD 5 billion semiconductor plant in Batam and a specialized training center in Bandung. The participation of Sharp, NEC, and UTAC enhances the supply chain. Indonesia's strategic repositioning, supported by a USD 131 million US investment and digital infrastructure assistance, establishes the country as a significant player in the ASEAN Semiconductor market, propelled by growing demand for electronics and government efforts. This partnership enhances the economy of Indonesia and strengthens the global semiconductor supply chain, guaranteeing a more robust technological future.

• The battery material dominance in the region is driving the growth of electric vehicles, affecting the demand for semiconductors.

Indonesia, known for its abundant nickel resources, is now considered a major player in the global supply chain for electric vehicle batteries. In 2022, the country produced 1.6 million tonnes of nickel, surpassing Australia by ten times. In order to take advantage of this opportunity, Indonesia prohibited the export of unprocessed nickel ore in 2020, which led to increased foreign investments and the development of a local battery sector. The formation of Indonesia Battery Corporation (IBC) with LG and Hyundai reflects the nation's aspiration to become a leading hub for global battery Production. Indonesia remains a leader in the nickel industry due to its advantageous location and strong government backing, despite ongoing environmental and regulatory obstacles. The increase in nickel Production and processing supports the EV industry and affects the wider ASEAN Semiconductor market, since nickel-based batteries are crucial in many electronic devices.

ASEAN Semiconductor Market Restraints:

• ASEAN's potential for semiconductor growth is limited by infrastructure challenges.

India faces major infrastructure challenges that are impeding its goal to establish itself as a hub for semiconductor manufacturing. Ineffective transportation, plagued by traffic and interruptions, obstructs the smooth flow of goods and merchandise. The uncertain power source, essential for making semiconductors, presents a significant danger. Additionally, India's new advanced manufacturing system, which lacks the complexity of established hubs, reduces its appeal to international investors. Exorbitant logistics expenses, accounting for 14% of GDP compared to 8-10% in advanced countries, worsen operational ineffectiveness. In order to close the infrastructure gap and achieve its semiconductor goals, India needs to make significant investments in transportation networks, power generation and distribution, and advanced manufacturing facilities. Only after doing so can it establish itself as a key player in the global semiconductor value chain and attract global semiconductor players by creating a conducive environment.

• Shortage of talent is hindering the growth of the semiconductor market in ASEAN.

A significant challenge facing Vietnam's expanding semiconductor industry is the shortage of skilled engineers. The need for engineers in the IT and digital industries is much greater than the supply, with only 20% of the demand for semiconductors being satisfied, annually between “5,000 to 10,000” engineers are required. This skills shortage is impeding the industry's development and jeopardizing Vietnam's economic goals. This shortage is affecting over 50 foreign companies investing in Vietnam's semiconductor industry, who need a large workforce to operate efficiently. To address this problem, the Ministry of Education and Training is giving top priority to enhancing training programs for IC design engineers. Vietnam plans to close the talent gap and unleash the full potential of its semiconductor sector by increasing the number of graduates in semiconductor engineering to 3,000-4,000 per year.

ASEAN Semiconductor Market Segment Analysis:

By Application

In 2023, the network and communication sector emerged as the dominant application in the ASEAN Semiconductor market, capturing a notable 35% market share. The substantial surge was primarily attributed to the abrupt growth in consumer electronics demand, accelerated by the COVID-19 pandemic. The growing use of smartphones, tablets, and laptops in the area required more sophisticated networking features. At the same time, the data processing sector showed strong market interest, supported by the increasing use of cloud computing and data storage services. This part experienced increased need for memory devices, SSDs, and other storage Component s to bolster the area's growing digital infrastructure.

By Component

Based on Memory Device  hold the largest share in ASEAN Semiconductor Market with 26 % of share in 2023, driven by soaring demand for DRAM and NAND flash across data centers, consumer electronics, and automotive applications. The rapid expansion of AI, IoT, and cloud computing has intensified the need for high-speed, energy-efficient, and scalable memory solutions. Data centers depend on DRAM for real-time processing and NAND flash for high-capacity storage, ensuring seamless cloud services and AI workloads. In consumer electronics, the widespread adoption of smartphones, laptops, and gaming consoles has heightened demand for faster and more efficient memory. Meanwhile, the automotive sector increasingly relies on robust memory solutions to support infotainment systems, ADAS, and autonomous driving technologies.

ASEAN Semiconductor Market Regional Analysis:

Indonesia semiconductor production

Indonesia is the dominant country in the ASEAN semiconductor market of around 24%, driven by its growing manufacturing capabilities, robust industrial base, and increasing investments in technology. As one of Southeast Asia’s largest economies, Indonesia leads in semiconductor production, backed by its strategic location and government efforts to bolster its semiconductor ecosystem. The country has attracted significant foreign investment in manufacturing, research, and development, making it a key regional player. Additionally, Indonesia’s expanding digital infrastructure, rising consumer electronics demand, and integration into global supply chains further solidify its leadership.

Vietnam Electronics Industry Growth

Vietnam is the fastest Growing Country in ASEAN Semiconductor Marketover the forecast period 2024-2032. ASEAN has established itself as a key semiconductor manufacturing center in Asia. The plan to integrate the AEC acts as a trigger for more trade within the region and worldwide, attracting multinational companies to invest in advanced technologies and manufacturing. Vietnam, within the ASEAN group, has become a leading country, showing significant expansion in its electronics and electrical (E&E) manufacturing industry. In the last ten years, Vietnam has evolved into a major exporter of affordable electronics, attracting many manufacturers involved in advancing technology. The rise in manufacturing investment in Vietnam in 2021 was highlighted by the global Navigator survey conducted by HSBC, showing an 18% increase in inbound investment.

ASEAN Semiconductor Supply Chain

ASEAN is ready for substantial growth in the semiconductor market, fueled by rising foreign direct investment The Philippines and Thailand are leading in this trend, experiencing net FDI growth of 16% and 14% respectively. The semiconductor sector in the area is strategically improving its supply chain network, which includes procurement, design, manufacturing, and testing processes. This thorough method guarantees that the end Products will meet the strict requirements of the worldwide market, strengthening ASEAN's role as a significant player in the semiconductor industry.

Emphasize on Excellence and Sustainability in Manufacturing

Leading semiconductor producers in ASEAN give priority to operational excellence and sustainability for achieving long-term success.

Combining cutting-edge semiconductor and infrastructure software solutions is essential for market leadership and sustainable financial performance in the integration of advanced technologies.

• NVIDIA utilizes a fabless manufacturing strategy by contracting out Production to specialized suppliers, while maintaining emphasis on design and innovation.

• TSMC Strategic Partnerships: Taiwan Semiconductor formed a partnership with EBV Elektronik in January 2019 to distribute its Products throughout Europe.

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ASEAN Semiconductor Market Key Players:

• Intel Corporation

• Qualcomm

• Samsung Electronics 

• SK hynix

• Taiwan Semiconductors

• Texas Instruments

• Toshiba Corporation

• Rohm Semiconductor

• Renesas Electronics Corporation

• Micron Technology

• NVIDIA Corporation

• NXP Semiconductors N.V.

• Advanced Micro Devices (AMD)

• Broadcom Inc.

• STMicroelectronics

• Infineon Technologies

• MediaTek Inc.

• Analog Devices, Inc.

• Marvell Technology

• GlobalFoundries

ASEAN Semiconductor Market Competitive Landscape:

Toshiba Electronic Devices & Storage Corporation is a global leader in semiconductor and storage solutions, offering a comprehensive range of products including power semiconductors, microcontrollers, memory devices, and hard disk drives. The company serves diverse industries such as automotive, industrial, and consumer electronics, providing innovative solutions that drive digital transformation and support sustainable development. With a strong commitment to research and development, Toshiba Electronic Devices & Storage Corporation continues to deliver cutting-edge technologies that meet the evolving needs of its customers worldwide.

• In March 2021, Toshiba Electronic Products and Storage Corporation will build a 300-millimeter water fabrication facility at its Kaga, Japan, site to increase the Production capacity of its power Products. Mass Component  ion is anticipated to begin in the first half of FY 2023.

ROHM Co., Ltd., headquartered in Kyoto, Japan, is a leading global semiconductor manufacturer specializing in integrated circuits (ICs), discrete semiconductors, optoelectronic devices, and power modules. Serving automotive, industrial, consumer electronics, and communication sectors, ROHM is recognized for high-performance, energy-efficient solutions that cater to growing demand for electric vehicles, industrial automation, and IoT applications. The company invests heavily in R&D to develop next-generation semiconductors, including power management ICs, sensors, and microcontrollers, supporting the expanding electronics market. ROHM’s strategic partnerships and global production footprint enable it to capitalize on trends like smart devices, renewable energy systems, and 5G deployment, strengthening its position in the semiconductor market.

• In January 2021, ROHM CO, LTD. unveiled the CSL1501RW, an ultra-compact side-emitting infrared LED that is intended for head-mounted MR/VRAR (virtual reality, XR) gaming systems and industrial headset displays. The CSL1501 RW provides an industry-small side-view design with a top wavelength of 860 nm, producing light parallel to the mounting surface and offering remarkable design flexibility.