The Philippines has an opportunity to strengthen its position in the global semiconductor supply chain as rising demand for artificial intelligence (AI), high-performance computing, electric vehicles (EVs), and advanced communications technologies drives investment across Asia Pacific (APAC). This is among the key findings of a new report released by Federal Express Corporation (FedEx) in collaboration with Frost & Sullivan.

Titled From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map, the report identifies APAC as the center of the global semiconductor ecosystem, accounting for approximately 58% of global semiconductor industry revenue. As advanced chips become increasingly essential to AI applications, data centers, connected devices, and next-generation vehicles, efficient movement of high-value technology components across borders is becoming more critical.

For the Philippines, the growing demand presents an opportunity to build on its established role in semiconductor assembly, packaging, and testing. Supported by a skilled workforce and an existing network of global manufacturers and local suppliers, the country is positioned to attract further investment as companies diversify their manufacturing and sourcing operations across the region.

AI Infrastructure Accelerates Semiconductor Demand

The report identifies AI and high-performance computing as the fastest-growing drivers of semiconductor demand, with more than 2,000 new data centers expected to be built globally between 2026 and 2035.

Beyond semiconductors, the expansion of AI infrastructure is increasing demand for high-density servers, networking equipment, cooling systems, and power solutions. These components often pass through multiple manufacturing, assembly, and testing hubs before reaching data centers, creating increasingly complex international supply chains.

Demand is also expanding across other industries, including EVs, which require significantly more chips than conventional vehicles, as well as 5G, the Internet of Things (IoT), consumer electronics, medical devices, and industrial automation.

“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. He noted that businesses increasingly need resilient, visible, and agile supply chains to move critical technology components across multiple markets, adding that FedEx supports these requirements through its regional network, global reach, and specialized logistics capabilities.

The Philippines’ Role In The Regional Semiconductor Network

Semiconductor production is distributed across specialized markets throughout Asia Pacific. China is a major supplier of materials and a growing fabrication hub, while Taiwan leads advanced semiconductor manufacturing and accounts for roughly 60% of global foundry output. South Korea is a leader in memory chips and advanced fabrication, while Japan plays a critical role in semiconductor equipment, materials, and specialized manufacturing inputs.

Southeast Asia, including the Philippines, has emerged as an important center for semiconductor assembly, packaging, and testing. The country hosts manufacturing operations for major global semiconductor companies and has developed a workforce with experience in these specialized services.

Recent investment activity in Philippine economic zones reflects continued interest in electronics and advanced manufacturing. Government initiatives are also encouraging the industry to move toward higher-value activities, including research, engineering, design, and advanced manufacturing.

“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.

He added that reliable connectivity to suppliers and customers across the region and worldwide will be essential for the country to turn its geographic position and industrial capabilities into a stronger competitive advantage.

A FedEx survey conducted at SEMICON Taiwan 2026, one of the semiconductor industry’s major trade shows, further highlighted expectations for regional growth. Nearly four in five respondents identified Taiwan, Southeast Asia, Greater China, and Japan as markets likely to experience the greatest increase in semiconductor demand over the next three years.

The survey also found that 35% of respondents expect their companies to expand manufacturing into additional APAC markets, while another 25% plan to increase or diversify sourcing within the region or globally.

Supply Chain Resilience Becomes A Priority

As semiconductor supply chains span more markets, businesses are reassessing strategies traditionally focused on efficiency and just-in-time operations. Geopolitical uncertainty, regulatory complexity, rising operating costs, and cross-border customs requirements are encouraging companies to adopt more resilient approaches, including geographic diversification and inventory buffers.

In the FedEx survey, 30% of respondents identified geopolitical disruption as the most significant challenge to future growth, ahead of other operational concerns. These findings underscore the importance of dependable international logistics networks that can support critical, high-value shipments despite potential disruptions.

Speed is another key consideration. Forty-four percent of respondents identified faster international shipping as the most important capability when selecting logistics and supply chain partners over the next three years.

FedEx supports Philippine businesses through its international network and local operations, including its gateway at Clark. Located near major industrial and economic zones in Central Luzon, the gateway provides access to regional and global markets, helping facilitate the movement of time-sensitive and high-value shipments.

As demand for semiconductors and AI infrastructure continues to grow, the report highlights the importance of combining manufacturing expertise with reliable logistics, visibility, and cross-border connectivity. For the Philippines, strengthening these capabilities could help the country capture emerging opportunities in the evolving semiconductor industry.

The full report, From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map, is available for download through FedEx.