Southeast Asian nations revise
semiconductor strategies as Trump's shadow looms
- The ruling party in South Korea pushes for subsidies and work-hour exemptions to boost semiconductor competitiveness amid US-China tensions
- Japan Prime Minister Ishiba plans to invest ¥10 trillion ($6.5 billion) by 2030 to support AI and semiconductor industries
- TSMC’s Kumamoto facility in Japan will start production by 2027, with a monthly capacity of 100,000 wafers
- Vietnam’s government is simplifying investment procedures to attract foreign semiconductor companies
- Vietnam’s semiconductor packaging capacity is expected to rise from 1% to 9% of global capacity by 2032
Southeast Asian countries, including South Korea, Japan, and Vietnam, are revising their semiconductor strategies to stay competitive amid changing global politics and the potential impact of US-China tensions.
In South Korea, the ruling People Power Party is pushing for legislation to support the semiconductor industry by offering subsidies and exempting it from a national work-hour cap. The 52-hour workweek, introduced in 2018, is seen as a barrier to competitiveness. Some fear that upcoming US tariffs on China could affect Korean chipmakers, making Chinese chips cheaper, but officials remain hopeful that Korean companies will adapt and continue to invest.
In Japan, Prime Minister Shigeru Ishiba announced plans to allocate over ¥10 trillion ($6.5 billion) by 2030 to support AI and semiconductor industries. The funds aim to attract private investment, including a major project to bring Taiwan’s TSMC to Kumamoto. The facility is expected to begin operations by 2027 and produce over 100,000 wafers per month.
Vietnam is also positioning itself to boost its semiconductor industry, focusing on assembly, testing, and packaging. The government is simplifying investment processes to attract foreign companies, including Intel and Amkor. Vietnam’s capacity for advanced packaging is expected to grow significantly, from 1% of global capacity in 2022 to 9% by 2032, reflecting its increasing role in the semiconductor supply chain.
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