AI Demand Opens Opportunities for Philippine Semiconductor Industry, Fedex Report Says

Growing demand for artificial intelligence, advanced computing, and electric vehicles could create new opportunities for the Philippine semiconductor industry, according to a report developed by FedEx and Frost & Sullivan.

Released on October 13, 2026, the findings point to the Philippines’ established assembly, packaging, and testing operations as a foundation for attracting investment as manufacturers expand and diversify across Asia Pacific.

The report, “From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map,” also highlights the importance of reliable logistics as components move between specialized manufacturing hubs.

Building on existing Philippine capabilities

The report identifies Southeast Asia, including the Philippines, as an important center for semiconductor assembly, packaging, and testing.

It says the country’s skilled workforce, global manufacturers, and local suppliers could help it capture opportunities from changes in regional production and sourcing.

“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 of FedEx Philippines.

The report also points to efforts to develop higher-value activities, including research, engineering, design, and advanced manufacturing. It does not quantify how much new investment or employment the Philippines could gain.

AI infrastructure drives demand beyond chips

According to the report, Asia Pacific accounts for approximately 58 percent of global semiconductor industry revenue.

It identifies AI and high-performance computing as the fastest-growing demand drivers and projects that more than 2,000 new data centers will be built globally between 2026 and 2035.

That expansion would require more than semiconductors. Servers, networking equipment, cooling systems, and power solutions also form part of the infrastructure supporting AI applications.

The report says these technologies often pass through several manufacturing, assembly, and testing locations before reaching their final destinations, increasing the need for coordinated cross-border supply chains.

Electric vehicles, 5G, connected devices, medical equipment, and industrial automation are additional sources of semiconductor demand.

Survey points to regional expansion

A separate FedEx-commissioned survey at SEMICON Taiwan 2026 provides insight into industry participants’ expectations.

Among respondents:

• 35 percent expected their companies to expand manufacturing into additional Asia Pacific markets over the next three years.
• 25 percent planned to increase or diversify sourcing within Asia Pacific or globally.
• 30 percent identified geopolitical disruption as the most significant challenge to growth.
• 44 percent selected faster international shipping as the most important capability when choosing logistics and supply chain partners over the next three years.

The survey collected responses from 478 semiconductor industry participants during the event in Taipei on September 2–4, 2026.

Respondents represented corporations, industry associations, and research institutes from Asia Pacific, Europe, and North America. The findings reflect this event-based group’s views rather than a Philippine-only industry survey.

Reliability becomes part of competitiveness

The report describes a shift toward supply chains that combine efficiency with greater resilience, including geographic diversification and inventory buffers.

For Philippine manufacturers and suppliers, that makes connectivity to overseas customers and production partners an important part of competing for new business.

FedEx cites its Clark gateway, near industrial and economic zones in Central Luzon, as part of its network supporting high-value and time-sensitive shipments.

The opportunity outlined in the report remains prospective. Its central message is that Philippine manufacturing strengths need dependable logistics and regional connections to benefit from the next wave of semiconductor demand.

The report is available through FedEx’s semiconductor industry insights page.