SINGAPORE, October 7, 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). 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[1]. 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 Taiwan, Southeast Asia, Greater China, and Japan as the markets expected to see the greatest increase in semiconductor demand over the next three years.
“The next decade of innovation will be shaped not only by advances in semiconductors, but by the strength and resilience of the supply chains that power AI and digital infrastructure,” said Salil Chari, president, Asia Pacific, FedEx. “As investment in AI infrastructure accelerates, businesses are managing increasingly complex supply chains spanning semiconductors, servers, networking equipment, cooling systems and advanced technology components across multiple markets. Resilience, visibility, and agility have become strategic advantages. FedEx is helping customers connect these critical supply chains through our extensive APAC network, global reach and specialized logistics capabilities, enabling innovation to move faster from factory floor to data center.”
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. Rather than being concentrated in a single market, semiconductor manufacturing is distributed across highly specialized hubs throughout the region. Key regional strengths include:
- China as a major material supplier, consumer market and growing fabrication hub
- Taiwan, 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 introduced daily direct flights between Taiwan and South Korea, extending cutoff times by more than three hours and providing greater flexibility for high-tech customers. FedEx has also expanded its Taoyuan Transshipment Center in Taiwan, enhancing processing efficiency and capacity to support growing volumes of semiconductor and advanced technology shipments moving across the region.
The report provides businesses with insights into the evolving AI and semiconductor ecosystem across Asia Pacific, 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] From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map