Bangkok Thailand, October 19 – 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, highlighting Thailand’s growing role in semiconductor packaging and testing. The report comes as chip demand rises across Asia Pacific (APAC), driven by artificial intelligence (AI), high-performance computing, electric vehicles (EVs), and advanced communications technologies.
The report, From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map, underscores APAC’s central role in the global semiconductor ecosystem, representing approximately 58% of global semiconductor industry revenue[1].
Semiconductor production across APAC is spread across specialized markets, with different economies contributing at different stages of the value chain. Within this ecosystem, Thailand is part of the region’s assembly, packaging and testing network.
“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.”
“Thailand’s expanding automotive manufacturing sector, including the shift toward electric vehicles and smart manufacturing, is igniting a growing demand for advanced semiconductor technologies,” said Sasathorn Phaspinyo, managing director, FedEx Thailand. “As chips become increasingly critical to vehicle performance, connectivity, and safety, Thailand is well positioned to play an important role in supporting the next generation of automotive innovation while strengthening its contribution to regional supply chains.”
AI Growth Drives Semiconductor and Infrastructure Demand
Growing AI adoption is increasing demand not only for semiconductors, but also for supporting high-density servers, networking equipment, cooling systems and power solutions. These technologies often move across multiple manufacturing, assembly and testing hubs worldwide, creating increasingly interconnected supply chains.
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
According to the report, markets across APAC contribute distinct strengths to semiconductor innovation and production. These 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, including Thailand, 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. Small- and medium-sized enterprises (SMEs) also play an important role throughout the semiconductor supply chain, benefiting from growing opportunities in high-value niche segments.
A recent FedEx survey at SEMICON Taiwan 2026 also points to continued regional demand growth, with nearly four in five respondents expecting markets across Taiwan, Southeast Asia, Greater China and Japan to see the greatest increase in semiconductor demand over the next three years.
The same survey found that 35% of respondents said they expect their companies to expand manufacturing into additional APAC markets over the next three years, while 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, critical shipments.
Logistics Enabling the Next Chapter of Semiconductor Growth
Survey findings also 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.
Beyond speed, semiconductor supply chains also require secure handling, shipment visibility and reliable cross-border transportation for time-sensitive shipments.
To support this demand for semiconductor and advanced technology shipments, 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 for growing shipment volumes 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