Artificial intelligence is doing more than increasing demand for advanced chips. It is also changing how those chips, servers and other critical technology components move across Asia.
A new FedEx report developed with Frost & Sullivan says the Asia Pacific semiconductor supply chain is becoming more interconnected as investment in AI, high-performance computing and digital infrastructure grows. Electric vehicles (EVs) and advanced communications technologies are adding to that demand.
For Asia, the shift matters. The region already accounts for about 58% of global semiconductor industry revenue, according to the report. Growth in AI could deepen its role in global technology manufacturing while creating fresh opportunities for logistics providers, manufacturers and smaller specialist businesses.
AI Infrastructure Is Driving New Chip Demand
AI and high-performance computing are among the fastest-growing drivers of semiconductor demand identified in the report.
More than 2,000 new data centres are expected to be built globally between 2026 and 2035. Each facility needs far more than chips. High-density servers, networking equipment, cooling systems and power infrastructure all form part of the wider AI ecosystem.
These components may pass through several manufacturing, assembly and testing locations before reaching a data centre. That makes reliable cross-border movement increasingly important.
Other industries are adding pressure. EVs require more chips than conventional vehicles, while 5G, connected devices, medical technology and industrial automation continue to expand semiconductor use.
Asia’s Semiconductor Hubs Are Closely Connected
The region’s strength does not sit in one country. Instead, different markets have developed specialised roles.
Taiwan leads in advanced semiconductor manufacturing and accounts for roughly 60% of worldwide foundry output, according to the report. South Korea has a strong position in memory chips, while Japan remains important for semiconductor equipment, materials and specialist manufacturing inputs.
China is a major materials supplier and consumer market, alongside its growing fabrication capacity. Southeast Asia, meanwhile, has become an important base for semiconductor assembly, packaging and testing.
This division of expertise means a single semiconductor can cross several borders during design, fabrication, packaging and testing.
The opportunities are not limited to large technology groups. Smaller and medium-sized companies can also participate in specialist manufacturing, components, services and other high-value parts of the supply chain.
Semiconductor Companies Plan Further APAC Expansion
Industry sentiment suggests companies expect that regional network to grow.
FedEx surveyed 478 semiconductor industry participants at SEMICON Taiwan in September 2026. Nearly four in five respondents pointed to Taiwan, Southeast Asia, Greater China and Japan as markets expected to see the strongest increases in semiconductor demand over the next three years.
Another 35% said their companies expect to expand manufacturing into additional APAC markets. A further 25% plan to increase or diversify sourcing within the region or globally.
For Southeast Asian economies, this could support opportunities in manufacturing, testing, engineering, logistics and supporting industrial services.
Supply Chains Put Greater Focus on Resilience
Cost and efficiency remain important, but semiconductor businesses are also paying closer attention to resilience.
In the survey, 30% of respondents identified geopolitical disruption as their biggest challenge to growth, ahead of rising operating costs and cross-border trade and customs complexity.
Companies are responding by spreading production and sourcing across more locations and maintaining larger inventory buffers in some cases. The shift marks a move away from relying solely on highly lean, just-in-time supply chains.
Logistics is part of that adjustment. Some 44% of respondents identified faster international shipping as the most important capability when choosing logistics and supply chain partners over the next three years.
FedEx has responded with daily direct flights between Taiwan and South Korea and an expanded Taoyuan Transshipment Center in Taiwan. The company says the changes are designed to support growing volumes of semiconductor and advanced technology shipments.
Why This Matters for Asia’s Growth
The semiconductor story is increasingly tied to Asia’s wider digital economy.
More AI infrastructure can create demand across data centres, manufacturing, energy systems, logistics and specialised services. It can also open new areas for SMEs that supply components or technical expertise to larger technology ecosystems.
For regional economies, the challenge will be capturing those opportunities while keeping supply chains reliable and connected.
Asia already sits at the centre of semiconductor production. The AI boom could strengthen that position further, but future competitiveness may depend just as much on how efficiently technology moves between markets as on where it is produced.
Conclusion
AI is adding another layer of growth to Asia Pacific’s semiconductor industry. New data centres, advanced computing and digital services are increasing demand for chips as well as the infrastructure around them.
As companies expand and diversify across the region, stronger logistics links and resilient supply chains will become increasingly important. That creates a broader growth story extending from chip fabrication plants to SMEs, transport networks and the digital infrastructure powering Asia’s next stage of development.
