Manila, Philippines, October 12, 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.
For the Philippines, the shift presents an opportunity to build on the country’s established position in the global semiconductor supply chain as an important hub for assembly, packaging and testing, supported by a skilled workforce and an established ecosystem of global manufacturers and local suppliers.
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. 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 being 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.
The Philippines: A Key Player In Increasingly Interconnected APAC 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; and Japan plays a critical role in semiconductor equipment, materials and specialty manufacturing inputs.
Southeast Asia, including the Philippines, has emerged as a key center for semiconductor assembly, packaging and testing operations.
The Philippines hosts manufacturing operations of major global semiconductor companies and has developed a skilled workforce supporting assembly, packaging and testing services. This existing industry base gives the country an opportunity to capture new investment as semiconductor companies seek to expand and diversify their manufacturing and sourcing footprints across Asia Pacific.
Recent investment activity in the country is highlighting this shift. Philippine economic zones continue to attract electronics and advanced manufacturing projects, while government efforts are increasingly focused on moving the country toward higher-value activities within the semiconductor value chain, including research, engineering, design, and advanced manufacturing.
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.
“The Philippines has decades of experience and a strong talent base in semiconductor manufacturing. The opportunity now is to build on these strengths as the industry enters a new phase driven by AI, advanced computing and increasingly distributed supply chains,” said Garrick Thompson, managing director, FedEx Philippines. “For the Philippines to capture more of this growth, manufacturing capability needs to be matched by reliable connectivity to suppliers and customers across the region and around the world. This is where logistics can help turn our geographic position and industrial capabilities into a stronger competitive advantage.”
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.
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, 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.
FedEx supports this connectivity through its extensive international network and operations in the Philippines, including its gateway at Clark. Located close to major industrial and economic zones in Central Luzon, Clark provides Philippine businesses with convenient access to FedEx’s regional and global network, helping facilitate the movement of high-value and time-sensitive shipments to international markets.
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.