In response to the growing demand for artificial intelligence (AI) and semiconductors, multiple Southeast Asian countries are implementing measures to attract foreign investment and establish manufacturing facilities, boosting regional tech industry growth and employment. According to recent reports, Singapore's Jurong Group is preparing to expand its semiconductor manufacturing park by 11% to entice more major semiconductor companies. Notable firms such as Micron Technology from the U.S. and German wafer manufacturer GlobalFoundries have already set up operations in Singapore.
The semiconductor industry relies heavily on a stable power supply and significant water resources. Jurong Group has indicated that part of the newly available land will be in the eastern region, with plans to complete the facilities by the end of the year. Companies looking to set up in this area will benefit from tailored road infrastructure and new water supply lines. GlobalFoundries, the third-largest wafer foundry globally, has been operating in Singapore since 2010 and expanded its facility by 23,000 square meters last year to increase chip production capacity. The company emphasized the crucial role Jurong Group played in developing its $4 billion new factory, pointing out Singapore's robust supply chain and infrastructure network.
In 2023, Southeast Asia has seen a surge in technology company investments, particularly in AI. Microsoft’s CEO, Satya Nadella, announced increased AI investments in Malaysia and Thailand. Over the next four years, Microsoft plans to invest $2.2 billion in Malaysia to build cloud computing and AI infrastructure, providing AI skills training for 200,000 individuals. In Thailand, Microsoft is establishing a new regional data center to support the nation’s digital and AI-driven future strategies. Furthermore, Microsoft is set to invest $1.7 billion in Indonesia to expand data center capabilities.
Nvidia, a leading AI chip manufacturer, has also intensified its presence in Southeast Asia. Reports from Indonesian media indicate that Nvidia plans to partner with major local telecom company, Indonesian Satellite Corporation, to invest approximately $200 million in establishing an AI center in Central Java. The Indonesian Ministry of Communication and Information Technology noted that this AI center will be located in the city of Solo, where infrastructure is sufficient and there is potential for developing a skilled tech workforce.
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