Regional Integration — Collaboration is Key

Regional Integration — Collaboration is Key

Advancement Possible vis- à-vis SEMICON Southeast Asia

By Kai Fai Ng, president, Southeast Asia, SEMI

In a recent article, I read that Beijing’s hearty appetite for oil and gas acquisitions is quickly giving way to something most people carry with them in their pocket: semiconductors. Not surprising — considering that China is home to 1.3 billion mobile phone accounts. According to  McKinsey & Co., the government of China is expected to spend as much as 1 trillion yuan over the next ten  years to boost the domestic market and help private companies to build their own intellectual property, increase product depth and breadth, and if need be, acquire intellectual property and capabilities. A case in point — the JCET acquisition of Singaporean competitor StatsChipPac in November.

I see these developments positive for the Southeast Asia region and believe, with better integration among the countries in Southeast Asia, that there are many complementary opportunities to be had in our industry. However, this will only occur if we choose to work with each other, rather than operating as 10 disparate economies that often compete more than cooperate. This is also apparent with many government-government initiatives that are driving towards such integration. Come January 2015, Southeast Asia nations will take their most dramatic step yet towards creating a Europe-like common market for 600 million people.

We know that SEMI’s SEMICON Southeast Asia 2015 complements the development of the microelectronics/semiconductor industry. I believe that with vision and stewardship, and more importantly the unyielding support from our industry leaders and communities, the SEMICON Southeast Asia show could be the premium platform for regional business/technical exchange for our entire region.

For 2014 and 2015, SEMI estimates spending of almost $4 billion on front-end and back-end equipment in the Southeast Asia region, and another $13 billion in spending on materials including $3 billion on fab related materials.  In addition, according to the SEMI (www.semi.org) World Fab Forecast, Southeast Asia is home to over 35 production fabs covering Foundry, Compound Semiconductors, MEMS, Power, LED, and other devices.

The vibrancy and momentum of the semiconductor industry in Southeast Asia is dependent on many factors — including your participation.

See you at SEMICON Southeast Asia 2015 (April 22-24) in Penang!