The full recording of the webinar is available on YouTube.
https://www.youtube.com/live/QBxvvAHNr-M?si=lKnfJRqxpm8YGAmC
Overview:
On 26 March 2025, the ASEAN-Japan Centre hosted the “Inducing Innovation: Reinvigorating ASEAN-Japan Growth and Collaboration in the Semiconductor Industry with AI” webinar. The event, part of the ASEAN-Japan Insights Series, brought together experts and stakeholders from across ASEAN and Japan to explore the possible collaboration between Japan and ASEAN in the push for reigniting their semiconductor industries.
The following speakers presented on the following topics:
- Ferdinand “Perry” Ferrer, CEO and Chairman, EMS Group (Philippines), presented an overview of the Philippine Semiconductor and Electronics Industry, including its structure, key players, performance, and upcoming events. Link to presentation
- Andrew Chan, Director of the Malaysia Semiconductor Industry Association (MSIA), highlighted Malaysia’s key role in the ASEAN semiconductor landscape and stressed the importance of ASEAN-Japan collaboration, especially through AI, to strengthen the region’s position in the global value chain. Link to presentation
- Masaru Tsuchiya, Partner at McKinsey & Company, presented on Japan’s comparative advantages in the semiconductor industry, highlighting the complex supply chain and potential areas for collaboration between Japan and ASEAN.
- Dr. Lili Yan Ing, Lead Advisor (Southeast Asia) at the Economic Research Institute for ASEAN and East Asia (ERIA), highlighted the innovation opportunities within ASEAN’s semiconductor industry, examining the global market, value chains, ASEAN’s potential, existing barriers, and the path forward through enhanced ASEAN-Japan collaboration. Link to presentation
A dynamic panel discussion featuring the speakers and moderated by Mark Manantan, Director of Cybersecurity and Critical Technologies at the Pacific Forum in Honolulu, Hawaii and a visiting fellow at the National Institute for Defense Studies, Japan’s Ministry of Defense, followed each presentation to further digest key insights and foster deeper dialogue on strengthening ASEAN-Japan collaboration, addressing barriers, and identifying future growth opportunities in the semiconductor industry.
Here are the main takeaways from the presentations:
- Philippine semiconductor industry landscape: The Philippine electronics industry is significantly focused on Semiconductor Manufacturing Services (SMS), accounting for 70% of the sector, with a global reputation for assembly, test, and packaging, holding 6% of the global SMS market. The remaining 30% is Electronics Manufacturing Services (EMS).
- Malaysia’s strong semiconductor presence: Malaysia is a key player in the global semiconductor supply chain, ranking 6th in global electronic/semiconductor exports and handling a significant portion of global chip testing and packaging.
- ASEAN as a global hub for semiconductor manufacturing: ASEAN, including the Philippines and Malaysia, plays a crucial role in the global semiconductor value chain, contributing significantly to exports and possessing over 50 years of experience. However, its output is largely concentrated in lower value-added back-end activities.
- ASEAN and Japan in the global semiconductor value chain: In particular, ASEAN specializes in back-end semiconductor manufacturing, particularly in assembly, testing, and packaging, with countries like the Philippines and Malaysia holding significant global market shares. Meanwhile, Japan dominates in the upstream segments of the semiconductor value chain, excelling in semiconductor materials, equipment, and front-end manufacturing for larger nodes (40nm+), supported by its advanced technology, machinery, and R&D capabilities.
- Barriers to progress and innovation: ASEAN faces several challenges in its semiconductor industry, including a lack of coordination, limited high-value R&D and design capabilities, talent gaps, limited financial resources, and reliance on foreign technologies.
- Opportunities for regional collaboration: There is significant potential for collaboration between ASEAN and Japan in the semiconductor industry, particularly in areas such as supply chain localization, talent and workforce development, and enhancing advanced manufacturing capabilities. Japan’s strengths in technology, R&D, and process discipline can complement ASEAN’s manufacturing know-how and growing workforce.
Meanwhile, the following are some of the critical points highlighted during the panel discussion:
- Global Semiconductor Dynamics & ASEAN’s Role – The ongoing U.S.-China competition, technological advancements, and the rising demand for semiconductors due to AI are shaping ASEAN’s role in the global semiconductor landscape. The region must navigate these shifts while maintaining neutrality and leveraging its strengths.
- ASEAN’s Semiconductor Strategy & Talent Development – The Philippines prioritizes semiconductor growth through advanced packaging and chip design while emphasizing STEM education and workforce development. Malaysia, as the 6th largest semiconductor exporter, focuses on nurturing talent, fostering entrepreneurs, and developing AI-driven solutions for data centres and marketing. ASEAN as a whole must work towards a unified strategy rather than pursuing individual country interests.
- Japan’s Strengths & Collaborative Potential – Japan remains a leader in semiconductor materials, equipment, and memory. Despite past industry slowdowns, it is strengthening partnerships with the U.S. and Europe while looking to ASEAN for collaboration. Japan’s aging workforce makes ASEAN an ideal partner for supply chain localization and talent development through exchange programs and university partnerships.
- Barriers & Opportunities for ASEAN-Japan Collaboration – ASEAN faces challenges such as supply chain dependence and limited semiconductor investment relative to GDP. Japan, once dominant in the sector, was affected by trade agreements like the US-Japan Semiconductor Agreement, which allowed other Asian countries to catch up. Strengthening ASEAN-Japan cooperation through vocational training, investment agreements, and joint industry frameworks is crucial for sustained growth.
- Strategic Partnerships & Long-Term Cooperation – Japan’s expertise in high-quality semiconductor materials complements ASEAN’s strengths in wafer fabrication and ATP (assembly, testing, and packaging). The importance of long-term ASEAN-Japan collaboration was emphasized, particularly in supply chain localization, talent development, R&D hubs, and leveraging each other’s unique advantages to strengthen ASEAN’s position in the global semiconductor value chain.
- ASEAN’s Cohesion & Industry Positioning – ASEAN must present a cohesive and unified approach rather than engaging with Japan on an individual country basis. This is the “era of ASEAN,” making it essential to foster collaboration as a regional bloc rather than through fragmented national efforts.
- Gearing up for the Next Step – Malaysia’s recent IP agreement with ARM was highlighted as a key step in moving up the value chain. Japan’s semiconductor firms are becoming more globalized, hiring foreign IC design talent. The discussion reaffirmed that ASEAN’s growth in the semiconductor industry should be built on regional unity and strategic partnerships rather than adversarial or individual country engagements.
About the ASEAN-Japan Insights Series:
The ASEAN-Japan Insights Series serves as a prominent information-sharing platform focusing on ASEAN-Japan matters. This bilingual (English and Japanese) series features hybrid webinars addressing current topics relevant to both regions. It aims to facilitate knowledge exchange and foster collaboration among industry professionals, academics, governments, and enterprises.
For more information or to get involved in future webinars, please contact the Research and Policy Advocacy Cluster at info_rpa@asean.or.jp.
