Shanghai, China, October 23, 2026 – Federal Express Corporation (FedEx), one of the world’s largest express transportation companies, released findings from a new report developed in collaboration with Frost & Sullivan examining the evolving semiconductor ecosystem across Asia Pacific (APAC), including China. The report finds that growing demand for artificial intelligence (AI), high-performance computing, electric vehicles (EVs), and advanced communications technologies is accelerating semiconductor production and driving investment in the digital infrastructure that powers the AI economy. These trends are creating increasingly complex regional and global supply chains that depend on speed, visibility, and resilience.
The report, From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map, highlights how APAC has become the center of the global semiconductor ecosystem, accounting for approximately 58% of global semiconductor industry revenue. According to the report, Mainland China, the world’s largest single semiconductor market, alone accounts for more than half of the APAC market and nearly 30% of the global market. As industries increasingly rely on advanced chips to power AI applications, data centers, connected devices, and next-generation vehicles, the ability to move semiconductors and related technologies efficiently across multiple markets has become critical.
A recent FedEx survey conducted at SEMICON Taiwan 2026, one of the industry’s most influential trade shows, reinforced expectations for continued regional growth. Nearly four in five respondents identified Mainland China, Hongkong SAR, Taiwan, Southeast Asia, and Japan as the markets expected to see the greatest increase in semiconductor demand over the next three years.
“The rapid growth of AI and other advanced technologies is reshaping semiconductor supply chains across Asia Pacific,” said Poh-Yian Koh, President of FedEx China. “China remains central to this ecosystem as both a major market and manufacturing hub. As supply chains become more interconnected, businesses need greater speed, visibility and resilience. FedEx helps customers navigate this complexity through our global network and specialized logistics capabilities.”
AI Infrastructure a Major Driver of Semiconductor Demand
The report identifies AI and high-performance computing as the fastest-growing drivers of semiconductor demand. More than 2,000 new data centers are expected to be built globally between 2026 and 2035.
Beyond semiconductors, AI is accelerating demand for an entire ecosystem of supporting infrastructure including high-density servers, networking equipment, cooling systems and power solutions. These critical technologies often move multiple manufacturing, assembly and testing hubs before deployed in AI data centers worldwide, creating increasingly interconnected supply chains. As a result, businesses are placing greater emphasis on logistics providers that can deliver speed, visibility and seamless cross-border connectivity for high-value, time-sensitive shipments.
At the same time, EVs, which require significantly more chips than traditional vehicles, together with 5G, IoT, consumer electronics, medical devices and industrial automation are further expanding semiconductor demand across industries.
APAC Powers the Global Semiconductor Ecosystem
The report highlights APAC’s central role in semiconductor innovation and production. Mainland China is a key pillar of the region’s semiconductor ecosystem, serving as a major materials supplier, a leading consumer market, and the world’s largest single-country chip equipment market. As semiconductor manufacturing is distributed across highly specialized hubs throughout the region, Mainland China continues to play multiple critical roles across the value chain and remains deeply interconnected with the global semiconductor ecosystem.
Mainland China’s key contributions include:
· Major supplier of rare earth elements, copper, and semiconductor materials
· Important global semiconductor consumer market
· Growing role in chemicals and electronic components
· Expanding front-end fabrication and back-end capabilities
Across APAC, other markets also demonstrate specialized strengths:
· Taiwan, China, which leads global advanced semiconductor manufacturing and accounts for roughly 60% of worldwide foundry output.
· South Korea, a global leader in memory chip production and advanced fabrication capabilities.
· Japan, which plays a critical role in semiconductor equipment, materials and specialty manufacturing inputs.
· Southeast Asia, which has emerged as a key center for semiconductor assembly, packaging and testing operations.
This specialization creates a deeply interconnected ecosystem, with semiconductor design, fabrication, packaging, testing and deployment often occurring across multiple countries before a final product reaches market. Alongside hyperscalers, Small and Medium Sized Enterprises (SMEs) also play an important role, benefiting from growing opportunities in high-value niche segments.
Industry sentiment reflects this regionalization trend. In the FedEx SEMICON Taiwan survey, 35% of respondents said they expect their companies to expand manufacturing into additional APAC markets over the next three years. A further 25% plan to increase or diversify sourcing either within APAC or globally. This highlights a growing focus on supply chain diversification to support growth.
Supply Chains Shift from Efficiency to Resilience
Supply chain resilience is becoming a strategic priority. Geopolitical uncertainty, regulatory complexity, and other external disruptions continue to challenge operations.
Survey findings reinforce this shift with 30% of respondents citing geopolitical disruption as the most significant challenge to growth ahead of rising operating costs and cross-border trade and customs complexity.
Consequently, traditional just-in-time operating models are being supplemented with more resilient supply chain strategies, including geographic diversification and inventory buffers. This evolution is increasing demand for reliable international logistics networks capable of supporting high-value, mission-critical shipments.
Logistics Enabling the Next Chapter of Semiconductor Growth
As semiconductor supply chains become more complex and globally interconnected, survey findings suggest that speed and visibility will be central to future logistics strategies, with 44% of respondents identifying faster international shipping as the most important capability when selecting logistics and supply chain partners over the next three years.
To support this demand, FedEx continues to strengthen its network. This includes the launch of a dedicated, non-stop freighter service between Guangzhou, China and Sydney, Australia, enabling select shipments[1] from key Asian markets, including South China, Hong Kong SAR, Japan, South Korea, Malaysia, Thailand, and the Philippines, to reach Australia in as little as two business days.
The company has also introduced its FedEx Surround® Monitoring & Intervention Suite in China, an intelligent solution that helps businesses enhance supply chain control and visibility through real-time monitoring and an AI-powered dashboard.
The report provides businesses with insights into the evolving AI and semiconductor ecosystem across Asia Pacific including China, helping them better understand emerging supply chain trends, growth opportunities and the logistics capabilities needed to support the next wave of innovation. The full report can be downloaded here.
Survey Methodology
The survey was commissioned by FedEx and conducted onsite during SEMICON Taiwan in Taipei over September 2-4, 2026. Responses were collected from 478 semiconductor industry participants representing corporations, industry associations and research institutes from APAC, Europe and North America. The survey explored growth expectations, supply chain strategies, expansion challenges and future logistics requirements across the semiconductor ecosystem in Asia Pacific.
[1] Applicable to FedEx International Priority, International Priority Direct Distribution and International Priority Freight shipments originating from these key APAC markets: Southern Mainland China, Hong Kong SAR, Japan, South Korea, Malaysia, Thailand, and the Philippines.Delivery times are subject to availability and delays beyond FedEx’s control. All shipments are subject to FedEx’s Standard Conditions of Carriage