The ASEAN semiconductor market is on track to exceed US$52 billion by 2032, growing from over US$31 billion in 2023. According to Finance Minister II Datuk Seri Amir Hamzah Azizan, this growth will only be possible if the region shifts its focus from high-volume manufacturing to value-driven innovation.
Speaking at a panel discussion titled “A Nation That Creates Through Catalysing Ecosystems”, held in conjunction with the 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM), Amir Hamzah emphasized the importance of progressing into higher-value segments of the semiconductor supply chain. These segments include front-end design, fabrication, and the development of intellectual property (IP).
“ASEAN must become a region where innovation begins, not just where it is assembled,” said Amir Hamzah.
He highlighted that no nation reaches global leadership in the semiconductor industry alone. The success of countries like Taiwan and the United States was not just a result of talent or capital, but the presence of cohesive and well-supported ecosystems. He called on ASEAN to adopt a similar strategy by strengthening collaboration and coordination across member countries.
“Our region’s strength lies in doing complementary work, not identical work. With proper coordination, ASEAN can evolve into an integrated and future-ready semiconductor powerhouse,” he added.
ASEAN already possesses many of the building blocks required for leadership in this sector. These include strong industrial capabilities, a growing talent pool of skilled engineers, emerging innovation hubs, and access to dynamic consumer and enterprise markets.
However, challenges remain. Amir Hamzah noted that global supply chains are being restructured due to rising geopolitical tensions and the rise of protectionist trade policies. For instance, the recent United States decision to impose reciprocal tariffs, including a 24 percent duty on Malaysian exports, reflects a wider trend of countries turning inward.
In response, he urged ASEAN to stay committed to openness and integration. This includes diversifying supply chains, strengthening regional cooperation through trade frameworks like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and leveraging tools such as the ASEAN Single Window to reduce trade barriers and increase trust among member nations.
Amir Hamzah also addressed the potential of ASEAN’s startup ecosystem. Since 2012, the region has produced more than ten unicorns with a combined value exceeding US$34 billion. Yet, startups continue to face significant barriers such as limited access to funding, fragmented markets, and insufficient support for scaling up.
“If semiconductors represent the hardware of tomorrow’s economy, then startups are its operating system. They drive agility, adaptability, and innovation,” he said.
To help startups thrive, he stressed the need for supportive infrastructure, including clear regulatory frameworks, open and connected markets, trusted networks, and responsive institutions that grow alongside these young enterprises.
By focusing on ecosystem development, value creation, and regional integration, ASEAN has a strong opportunity to redefine its role in the global semiconductor and digital innovation landscape.
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