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

Southeast Asia’s evolution into a multi-node advanced packaging hub reflects a strategic recalibration under geopolitical decoupling pressures. Technically, this accelerates local adoption of hybrid bonding and silicon interposer processes, compelling equipment vendors to tailor solutions for Chiplet and 2.5D/3D integration. Compliance-wise, U.S. CHIPS Act restrictions are driving firms to diversify supply chains, raising capex by 15–20% but improving audit resilience. Market responses are already visible: ASE and Amkor are building dual-site redundancy in Malaysia and Vietnam, while leading OSATs from Taiwan, China are fast-tracking Thai fabs to sidestep tariffs. Within 18 months, advanced packaging will transition from back-end support to a core AI chip delivery function—effectively redefining value capture and eroding traditional foundry leverage.