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Semiconductors are the foundation of the digital economy. They are key components in modern technology, including data centers, artificial intelligence (AI), self-driving cars, smartphones, and other new technologies. According to PwC’s Semiconductor and Beyond report in 2026, the global semiconductor market is expected to reach US$1.03 trillion by 2030. The server and networking segment is projected to grow at an average rate of 11.6% per year, mainly driven by the global expansion of AI technology.
In ASEAN, a report by the Hinrich Foundation states that the region is becoming a strategic hub in the global semiconductor supply chain. ASEAN’s share of global semiconductor exports increased from 20% in 2015 to nearly 30% in 2024. Singapore and Malaysia play important roles in advanced manufacturing and testing. Meanwhile, Vietnam and Thailand are expanding in assembly, packaging, and printed circuit board production to move toward higher value-added activities.
A key driver of this growth is foreign direct investment. Since 2020, ASEAN has attracted more than US$60.8 billion in investment, mostly in Singapore and Malaysia. This reflects stable policies, good infrastructure, and skilled workers. At the same time, Vietnam and Thailand are receiving more attention, especially in the production of components for electric vehicles and electronic devices.
However, reliance on foreign trade and investment remains a major challenge for ASEAN. Geopolitical tensions, such as the trade conflict between the United States and China, directly affect supply chains. Therefore, increasing investment in research and development, as well as improving workforce skills, is important to ensure long-term competitiveness and sustainability.
Semiconductors also play a key role in data centers, which are the core infrastructure of the digital economy. High-performance chips are used in servers, storage systems, and network equipment in data centers. The more efficient and energy-saving the chips are, the better data centers can support AI processing and big data analysis.
In ASEAN, the growth of data centers is strong and aligns with the expansion of the regional digital economy. Investment from global service providers continues to increase to meet rising data demand. This strengthens the region’s position as a hub for digital infrastructure.
However, the rapid growth of data centers creates new pressure, especially in energy costs and heat management. As a result, companies are developing specialized AI chips that can reduce costs and energy use. These specialized chips are expected to account for up to 52% of the data center chip market by 2030. This trend shows the close link between the growth of the semiconductor industry and data centers.
The semiconductor industry can be seen as the “brain” of the digital economy, while data centers are the “infrastructure” that supports data processing and connectivity. Both sectors are closely connected and support each other. ASEAN’s efforts to develop its semiconductor industry alongside its role as a data center hub will not only improve regional competitiveness but also create higher value in the global supply chain, strengthen technological security, create skilled jobs, and support sustainable long-term growth of the digital economy.
Author:
Ms. Natjaree Petruang
Researcher
International Institute for Trade and Development (ITD)
www.itd.or.th
Publication: Bangkok BIZ Newspaper
Section: First Section/World Beat
Volume: 39 Issue: 13106
Date: Wednesday, Feb. 25, 2026
Page: 8 (bottom)
Column: “Asean Insight”
