Chris Tseng, Non-Resident Fellow with the Economic Security Program at DSET, was interviewed by TaiwanPlus in October for the feature report “Southeast Asia Enters Semiconductors: Malaysia, Singapore & the Chip Race.” Tseng joined a panel discussion with Associate Professor Archinan Kohpaiboon from Thammasat University in Thailand and Mr. Ng Sze Han, Executive Councillor for Investment, Trade and Mobility of Selangor State, Malaysia.
Tseng first noted that while the “Taiwan model” continues to lead in the field of advanced semiconductors, its replicability remains limited. He pointed out that around 95% of the global semiconductor market still relies on mature process technologies. Therefore, as countries seek to develop advanced manufacturing capabilities, they must also evaluate their own industrial structures and human capital. He emphasized that Taiwan’s success relies heavily on its sophisticated industrial clusters and stable talent pipeline. Without proper control over technology and information in international cooperation, he warned, Taiwan’s strategic advantage could be weakened.
On regional policy, Tseng observed that Taiwan and South Korea have generally pursued proactive industrial strategies to drive technological innovation, while Southeast Asian economies such as Malaysia and Thailand depend more on foreign direct investment (FDI). As a result, their industrial upgrading processes are more vulnerable to external market fluctuations. Citing 2021 data, he noted that Taiwan and South Korea each have about 9,000 researchers per million people—far higher than Malaysia and Thailand’s roughly 2,000—highlighting the disparity in talent density and R&D capacity.
Tseng also commended the Malaysian government’s efforts to address potential talent mobility challenges through international cooperation, while stressing that stronger linkages between the public and private sectors are essential to retain local talent effectively.
Sharing a broader macroeconomic perspective, Associate Professor Archinan Kohpaiboon analyzed Southeast Asia’s position in the global supply chain, noting that the region accounts for roughly 21% of global semiconductor exports—significantly lower than Northeast Asia’s 44%. Nonetheless, shifting geopolitical dynamics are reshaping supply chains, creating new opportunities for Southeast Asia to become a key node for multinational firms seeking “China-plus-one” diversification strategies.
Meanwhile, Selangor Executive Councillor Ng Sze Han highlighted the state’s progress in developing semiconductor design parks and talent cultivation programs. He noted that Selangor has partnered with major global firms such as ARM, Synopsys, and Cadence, and has established faculty training collaborations with Taiwan’s National Cheng Kung University, National Chiao Tung University, National Tsing Hua University, and Academia Sinica. He emphasized that talent should not be limited by geography, and that continuous engagement with overseas professionals remains a core mission for the government.
