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Singapore-based AI automation startup Galatek said it is tackling yield bottlenecks in micron-level packaging with AI-embedded equipment as demand for AI and high-performance computing (HPC) chips surges across Southeast Asia and global markets. The company is also pursuing a dual-track expansion spanning Southeast Asia and Taiwan.

At the recently concluded SEMICON SEA, the scale of industry interest in Southeast Asia was clear. Alongside the growing presence of Chinese exhibitors and the expanding ranks of Singapore and Malaysia-based companies, Taiwan suppliers also showed strong participation, underscoring the ambition of Taiwan manufacturers to tap regional semiconductor demand.

At a time when the global semiconductor industry is undergoing a historic restructuring, the Singapore Semiconductor Industry Association says Southeast Asia is evolving from a backend manufacturing base into one of the world's most resilient semiconductor supply chain hubs.

SEMICON SEA 2026 drew heavy crowds, underscoring Southeast Asia's emergence as an indispensable "strategic hub" in the global AI compute supply chain. The region's semiconductor players are now moving from "capacity substitution" to "technological self-reliance" in what is shaping up to be a long-distance race.

At SEMICON Southeast Asia 2026 in Kuala Lumpur, China's semiconductor equipment makers are steadily "infiltrating" the Southeast Asian market, extending from back-end packaging and testing into front-end processes while setting up subsidiaries in Singapore and Malaysia and using localized branding to break through. The shift is reshaping the competitive landscape at the region's annual semiconduct

Global semiconductor sales are projected to reach US$1 trillion this year and could double to US$2 trillion by 2035, driven by rapid growth in AI data centers. But the boom is also shining new light on Southeast Asia's limited front-end manufacturing base, as SEMI urges the region to add more fabs to reduce chip supply-chain concentration in China and Taiwan.

At SEMICON Southeast Asia 2026, SEMI President and CEO Ajit Manocha delivered a clear message: the semiconductor industry is entering a "multi-trillion-dollar journey," but capturing that growth will depend less on ambition and more on coordination, ecosystems, and long-term strategy.

The global semiconductor industry is entering a "multi-trillion-dollar" growth cycle sooner than expected, SEMI President and CEO Ajit Manocha said, urging Southeast Asian countries to strengthen cooperation to address talent, energy, and geopolitical challenges. Manocha predicted rapid revenue expansion driven by AI, IoT, and quantum demand.