Q3 2025 Quarterly Market Insights 2 - Flipbook - Page 5
Southeast Asia
Market & regional dynamics
Southeast Asia continued to serve a dual role: it remains essential for assembly/test,
substrates, and component manufacturing, whilst also developing into a packaging and
OSAT hub. Advanced-node wafer fabs are still dominated by other regions, but several
ASEAN governments and investors are boosting incentives to attract higher-value
activities. SEMI’s fab outlook highlighted many new mid-sized projects globally; some
ASEAN markets are well-positioned to capture portions of that.
Memory & components demand in the region
Manufacturing and supply-chain nodes across Southeast Asia felt the ripple effects
of global memory pricing: higher DRAM and HBM ASPs raised the bill of materials for
finished goods (servers, networking equipment), whilst demand for passive components
strengthened in July-August as industrial and automotive production schedules firmed.
Regional EMS and PCB suppliers reported stronger order books for infrastructure
build-outs.
New fabs, investments & local policy moves
Although the region hosts fewer leading-edge fabs, 2025 activity included capacity
expansions in mature nodes (200mm/300mm) and investments in packaging/test
facilities; local incentives and public-private partnerships sought to capture downstream
value (OSAT, test, substrates) rather than pure logic wafer starts. SEMI’s 2025 forecast
pointed to multiple fab projects starting globally, many intended to support the
AI compute ecosystem which indirectly benefits Southeast Asia’s packaging and
components industries.
Market Insights
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