As the technology conflict between the US and China has evolved into a prolonged trend, the semiconductor supply chain, once concentrated around the Taiwan Strait, has begun diversifying its investments to manage geopolitical pressures. Southeast Asia has emerged as a potential area for deployment, according to DIGITIMES Research.
Concurrently, the US's expanding cooperation with Southeast Asian countries to bolster the semiconductor supply chain has increased the region's strategic importance. DIGITIMES Research also noted that Singapore and Malaysia have relatively mature industrial clusters, and local government policies are favorable for attracting more companies to establish operations.
While India's semiconductor industry is still in its early stages, policy incentives are beginning to draw industrial investments. However, other countries in the region lack comprehensive policy support, making them less attractive for equity investments.
