The Philippines is positioned to gain from the artificial intelligence boom as semiconductor companies expand and diversify their supply chains across Asia Pacific, according to a new report from FedEx.
Federal Express Corporation (FedEx) released the findings on October 13, 2026, in Manila. The report was developed with Frost & Sullivan and examines the semiconductor ecosystem across the Asia Pacific (APAC) region.
It finds that rising demand for AI, high-performance computing, electric vehicles (EVs) and advanced communications technologies is speeding up chip production. That demand is also driving investment in the digital infrastructure behind the AI economy, and it is creating regional and global supply chains that depend on speed, visibility and resilience.
For the Philippines, the report sees a chance to build on its existing role as an important hub for assembly, packaging and testing. The country’s skilled workforce and its established ecosystem of global manufacturers and local suppliers support that position.
APAC at the center of the chip industry
The report, titled From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map, finds that APAC accounts for approximately 58% of global semiconductor industry revenue. As industries rely more on advanced chips for AI applications, data centers, connected devices and next-generation vehicles, moving semiconductors efficiently across multiple markets has become critical.
A recent FedEx survey at SEMICON Taiwan 2026, one of the industry’s most influential trade shows, points to continued regional growth. Nearly four in five respondents named Taiwan, Southeast Asia, Greater China and Japan as the markets expected to see the greatest increase in semiconductor demand over the next three years.
“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. “As investment in AI infrastructure accelerates, businesses are managing increasingly complex supply chains spanning semiconductors, servers, networking equipment, cooling systems and advanced technology components across multiple markets. Resilience, visibility, and agility have become strategic advantages. FedEx is helping customers connect these critical supply chains through our extensive APAC network, global reach and specialized logistics capabilities, enabling innovation to move faster from factory floor to data center.”
AI infrastructure drives demand
The report names AI and high-performance computing as the fastest-growing drivers of semiconductor demand. More than 2,000 new data centers are expected to be built globally between 2026 and 2035.
The effect reaches beyond chips. AI is also lifting demand for the infrastructure around them:
- High-density servers
- Networking equipment
- Cooling systems
- Power solutions
These technologies often pass through multiple manufacturing, assembly and testing hubs before reaching AI data centers worldwide. That makes supply chains more interconnected, and businesses are putting greater weight on logistics providers that can deliver speed, visibility and seamless cross-border connectivity for high-value, time-sensitive shipments.
Other sectors are adding to the demand. EVs, which require significantly more chips than traditional vehicles, are one example. Others include 5G, IoT, consumer electronics, medical devices and industrial automation.
The Philippines’ place in the regional ecosystem
Semiconductor manufacturing in APAC is not concentrated in a single market. It is spread across specialized hubs throughout the region, the report says:
- China: a major material supplier, consumer market and growing fabrication hub
- Taiwan: the leader in global advanced semiconductor manufacturing, accounting for roughly 60% of worldwide foundry output
- South Korea: a global leader in memory chip production and advanced fabrication capabilities
- Japan: a critical player in semiconductor equipment, materials and specialty manufacturing inputs
- Southeast Asia, including the Philippines: a key center for assembly, packaging and testing operations
The Philippines hosts manufacturing operations of major global semiconductor companies and has developed a skilled workforce supporting assembly, packaging and testing services. The report says this base gives the country an opportunity to capture new investment as chip companies expand and diversify their manufacturing and sourcing footprints across Asia Pacific.
Recent investment activity points the same way. Philippine economic zones continue to attract electronics and advanced manufacturing projects. Government efforts are increasingly aimed at moving the country toward higher-value activities in the semiconductor value chain, including research, engineering, design and advanced manufacturing.
Design, fabrication, packaging, testing and deployment often take place across multiple countries before a final product reaches market. Alongside hyperscalers, Small and Medium Sized Enterprises (SMEs) also play an important role, benefiting from growing opportunities in high-value niche segments.
“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. “For the Philippines to capture more of this growth, manufacturing capability needs to be matched by reliable connectivity to suppliers and customers across the region and around the world. This is where logistics can help turn our geographic position and industrial capabilities into a stronger competitive advantage.”
The FedEx SEMICON Taiwan survey also reflects the regionalization trend:
- 35% of respondents expect their companies to expand manufacturing into additional APAC markets over the next three years
- A further 25% plan to increase or diversify sourcing, either within APAC or globally
From efficiency to resilience
Supply chain resilience is becoming a strategic priority as geopolitical uncertainty, regulatory complexity and other external disruptions continue to challenge operations.
The survey bears this out. Thirty percent of respondents cited geopolitical disruption as the most significant challenge to growth, ahead of rising operating costs and cross-border trade and customs complexity.
As a result, traditional just-in-time operating models are being supplemented with more resilient strategies, including geographic diversification and inventory buffers. That shift is increasing demand for reliable international logistics networks capable of supporting high-value, critical shipments.
What chipmakers want from logistics
Survey findings suggest that speed and visibility will be central to future logistics strategies. Forty-four percent of respondents identified faster international shipping as the most important capability when choosing logistics and supply chain partners over the next three years.
FedEx supports this connectivity through its international network and its operations in the Philippines, including a gateway at Clark. Located close to major industrial and economic zones in Central Luzon, Clark gives Philippine businesses convenient access to FedEx’s regional and global network, helping move high-value, time-sensitive shipments to international markets.
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