Southeast Asia shifts from test-and-pack to multi-center advanced packaging hub - digitimes

As global semiconductor supply chains undergo reconstruction, Southeast Asia is transitioning from a traditional backend test-and-pack region to a resilient, multi-center advanced packaging and equipm... Read original →

Southeast Asia’s pivot from legacy OSAT to a multi-node advanced packaging hub triggers cascading effects across the semiconductor stack. Demand for high-precision bonding, thermal interface materials, and co-design EDA tools will force local suppliers upstream. Geopolitical hedging pushes U.S., European, and Japanese firms to build redundant capacity in Singapore and Malaysia—but export controls and localization mandates could inflate operational costs by 15–20%. TSMC is scaling CoWoS output in Singapore, while ASE partners with Vietnam to integrate OSAT with equipment servicing. Within 18 months, the region will likely close the loop from design to packaging, diverting mature-node orders from Taiwan, China and emerging as a testbed for 2.5D/3D integration standards—compelling global IDMs to rebalance their Asian footprint.