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AI and EV demand is speeding up chip production in Asia Pacific, which already earns about 58% of global semiconductor revenue
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35% of chipmakers surveyed plan to expand manufacturing into more APAC markets within three years
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44% say faster international shipping matters most when they choose logistics partners
The Philippines is well placed to win new semiconductor investment as rising demand for artificial intelligence (AI), electric vehicles (EVs) and advanced computing reshapes chip supply chains across Asia Pacific (APAC), according to a new FedEx report.
Federal Express Corporation (FedEx) released the report, From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map, on October 13. It was developed with Frost & Sullivan and finds that demand for AI, high-performance computing, EVs and advanced communications technologies is speeding up chip production and investment in digital infrastructure. Supply chains are becoming more complex and depend more on speed, visibility and resilience.
For the Philippines, this is a chance to build on its role as a hub for assembly, packaging and testing, backed by a skilled workforce and an established mix of global manufacturers and local suppliers.
APAC accounts for about 58% of global semiconductor revenue. As more industries rely on advanced chips for AI, data centers, connected devices and next-generation vehicles, moving them efficiently across markets has become critical.
Survey: Southeast Asia among top growth markets
FedEx surveyed 478 participants at SEMICON Taiwan 2026 in Taipei on September 2 to 4. Respondents came from companies, industry associations and research institutes in APAC, Europe and North America. Nearly four in five named Taiwan, Southeast Asia, Greater China and Japan as the markets likely to see the biggest rise in chip 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,” he added.
AI data centers drive chip demand
AI and high-performance computing are the fastest-growing sources of chip demand, with more than 2,000 new data centers expected worldwide between 2026 and 2035.
AI is also lifting demand for high-density servers, networking gear, cooling systems and power solutions. These components often pass through several manufacturing, assembly and testing hubs before they reach data centers. As a result, businesses want logistics providers that offer speed, visibility and smooth cross-border movement for high-value, time-sensitive shipments.
Demand is also growing from EVs, which need far more chips than conventional vehicles, and from 5G, the Internet of Things (IoT), consumer electronics, medical devices and industrial automation.
Where the Philippines fits in the APAC chip map
Chip manufacturing in APAC is spread across specialized hubs:
- China: major materials supplier, consumer market and growing fabrication hub
- Taiwan: leads advanced manufacturing, with about 60% of global foundry output
- South Korea: global leader in memory chips and advanced fabrication
- Japan: key source of chipmaking equipment, materials and specialty inputs
- Southeast Asia, including the Philippines: major center for assembly, packaging and testing
Major global chipmakers already operate in the Philippines. The report says this base positions the country to attract new investment as companies expand and diversify manufacturing and sourcing across the region.
Philippine economic zones keep attracting electronics and advanced manufacturing projects. The government is also pushing the country into higher-value work such as research, engineering, design and advanced manufacturing.
READ: FedEx launches new facility at APAC Trade Facilitation Center in Clark
Because design, fabrication, packaging, testing and deployment often happen in different countries, the region’s chip ecosystem is closely connected. Besides hyperscalers, small and medium-sized enterprises (SMEs) also have openings 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,” he said.
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In the survey, 35% of respondents expect to expand manufacturing into more APAC markets within three years, while 25% plan to increase or diversify sourcing within APAC or globally.
Supply chains move from efficiency to resilience
Resilience is now a top priority. Thirty percent of respondents named geopolitical disruption as the biggest challenge to growth, ahead of rising operating costs and cross-border trade and customs complexity.
Companies are adding geographic diversification and inventory buffers to just-in-time models, raising demand for reliable international logistics networks that can handle high-value, critical shipments.
