FedEx Report: AI Demand Drives APAC Semiconductor Supply Chain Expansion
A new FedEx report reveals 35% of chipmakers plan to expand across Asia Pacific, with demand for AI and EVs reshaping regional logistics for critical components.
APAC's Central Role in Chip Production
A new report from Federal Express Corporation (FedEx), developed with Frost & Sullivan, shows artificial intelligence (AI) demand is accelerating semiconductor production and digital infrastructure investment across Asia Pacific (APAC).
The report, titled "From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map", states that APAC currently generates approximately 58% of the global semiconductor industry’s revenue. This central position makes efficient movement of advanced chips and related technologies critical for the global innovation economy.
Expansion Plans and Demand Drivers
The growing need for AI, high-performance computing, electric vehicles (EVs), and advanced communications technologies is fuelling this surge. A recent FedEx survey conducted at SEMICON Taiwan 2026 found that 35% of semiconductor companies plan to expand their manufacturing presence into additional APAC markets over the next three years.
Nearly four in five respondents also identified Taiwan, Southeast Asia, Greater China, and Japan as the markets expecting the largest increase in semiconductor demand during this period. The report forecasts over 2,000 new data centres globally between 2026 and 2035.
Shift to Supply Chain Resilience
This expansion creates increasingly complex regional and global supply chains where speed, visibility, and resilience are paramount. Geopolitical disruption emerged as the most significant challenge to growth for 30% of survey respondents, ranking above rising operating costs and cross-border trade complexities.
Consequently, businesses are moving away from traditional just-in-time operating models, adopting strategies like geographic diversification and inventory buffers to build more resilient supply chains.
The shift means companies are placing greater emphasis on logistics providers that can ensure rapid and visible cross-border connectivity for high-value, time-sensitive shipments. Salil Chari, president of Asia Pacific for FedEx, noted that the strength of supply chains will define the next decade of innovation, alongside advances in semiconductors.
Businesses should anticipate further investment in specialised logistics capabilities to support the intricate movement of components like servers, networking equipment, and cooling systems across multiple manufacturing and testing hubs.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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