Fabricating success through strategic site selection in APAC

• Regional specialisation shapes site selection decisions: As semiconductor occupiers expand across APAC, site selection must be driven by operational fit, balancing government incentives with critical factors like infrastructure/utility readiness, talent availability and ecosystem maturity to identify the optimal location.
• Semiconductor facilities demand expert technical capabilities: Partnering with experienced facility management providers can protect multi-billion-dollar investments requiring critical environment management and to ensure maximum uptime.
• Skilled talent shortages intensify competition for semiconductor professionals: Invest in workplace quality and employee experience to gain an edge in the competition for top semiconductor talent.

The global semiconductor industry is on track to surpass USD 1 trillion in annual revenue by 2030, fuelled by exponential demand for high-value AI chips used in data centres, autonomous vehicles, and edge computing. APAC accounts for the largest share of global semiconductor sales and continues to strengthen its position through its unmatched manufacturing concentration of foundries and aggressive government incentives.

Semiconductor manufacturing is not a uniform activity. The operational requirements, supply chain dependencies, and technical expertise needed to produce leading-edge AI chips differ fundamentally from packaging mature node semiconductors. This specialisation means companies should strategically align their segment focus with capabilities available in the location to unlock operational advantages.

This report spotlights three locations at different semiconductor ecosystem maturities, but all with significant growth potential. Taiwan dominates leading-edge fabrication, producing over 90% of the world's most advanced chips through TSMC's unmatched ecosystem of suppliers, design expertise, and fabrication capabilities. Singapore is an advanced manufacturing leader in Southeast Asia, contributing one in ten global chips and a fifth of semiconductor equipment production while offering political stability for companies looking to manage geopolitical risk. India is building capabilities from a nascent base, leveraging government incentives and STEM talent to capture packaging and mature node manufacturing with the first fabrication plants starting operations in 2026.

Each market presents distinct tradeoffs. Taiwan and Singapore both offer robust ecosystems with mature infrastructure; Taiwan hosts the world's most advanced fabrication plants but faces heightened geopolitical risk, while Singapore provides a more geopolitically stable alternative, though it focuses primarily on mature nodes and packaging/testing rather than leading-edge manufacturing. India provides substantial cost advantages and government subsidies but faces challenges of infrastructure readiness and semiconductor job-ready talent in the short term.

The readiness of specialised infrastructure directly impacts how quickly companies can operationalise facilities and reach target production yields. For example, semiconductor fabrication requires vibration-controlled environments, power supplies stable enough to prevent fluctuations that damage delicate processes, and ultrapure water systems.

Markets with mature semiconductor infrastructure, such as Taiwan's science parks and Singapore's wafer fab parks, provide purpose-built infrastructure including controlled vibration zones, stable high-capacity power, customised logistics networks, and co-located supplier ecosystems. 

Emerging markets like India are still actively constructing their semiconductor support infrastructure. The government has initiated large-scale development through the National Infrastructure Pipeline project and Industrial Corridors with dedicated freight corridors, but project timelines will need to account for infrastructure completion, supply chain establishment, and contingency plans. 

Inside the fabrication plants, semiconductor operations also demand sophisticated property and facilities management to ensure operational efficiency and maximise uptime. As chips continue to shrink, cleanrooms in those fabrication plants have even stricter operational requirements to minimise contamination. Managing these critical environments requires technical expertise in HVAC systems and contamination control protocols, and complexity will continue to increase with each generation of advanced nodes.

The resource intensity of semiconductor operations presents escalating challenges as production scales. TSMC's electricity consumption accounted for 8% of Taiwan's overall usage in 2024 and is projected to reach nearly 24% by 2030 as manufacturing advances. As facilities expand to meet AI chip demand, optimising energy performance becomes essential for controlling costs and achieving environmental targets. JLL data shows that smart facility management focused on operational efficiency can deliver utility consumption reductions approaching 30%, a critical advantage in a time of rising costs.

Workforce constraints have emerged as a critical limitation on semiconductor expansion across APAC, with talent demand significantly outpacing supply. The shortage spans PhD-level researchers developing next-generation architectures to process engineers and equipment technicians. Despite government and industry talent initiatives, the gap between expansion timelines and talent pipeline development creates immediate competitive pressure.

These talent constraints directly impact location and workplace strategy. Site selection must account for proximity to established talent pools around major universities and semiconductor clusters. However, geographic proximity alone is insufficient; workplace quality has become a competitive differentiator. According to JLL’s Workforce Preference Barometer research, manufacturing frontline workers in APAC prioritise flexibility, sustainable and well-designed environments, and shorter commutes when evaluating employers. Singapore's government recognises this, investing in enhanced connectivity and greener facilities within wafer fab parks to attract talent.

Corporates must elevate workplace strategy beyond standard industrial specifications. From the same JLL study, manufacturing frontline employees in APAC report satisfaction with core productivity features but cite deficiencies in wellbeing aspects such as spaces where they can socialise and recharge. Priority investments should include essential shift-appropriate amenities (e.g. cafeterias, adequate lighting), wellness spaces for breaks, automation to reduce physical strain, and operational flexibility where feasible. Understanding the frontline experience can identify and address pain points before it leads to costly technical talent turnover.

Strategic partnerships with expert service providers made today will determine competitive position in the global semiconductor race for years to come. Three priorities should guide decision-making: