Semiconductor supply chains are in flux. Production that was once concentrated in a few core markets is now being rebuilt across new regions, often from the ground up. Wafer fabs are being planned in Germany. Back-end packaging and testing facilities are moving into Southeast Asia. Across the United States, new cleanrooms are going up in Phoenix, upstate New York and other places that, until recently, played no role in chip production.
Expansion is only part of the story; what’s happening now is a strategic reshaping of semiconductor supply chains. The goal is to reduce risk, and bring production closer to where chips are actually used.
Europe wants to secure local capacity. The United States wants to break its dependence on Asia. Southeast Asia, already skilled in electronics assembly, wants to develop as a hub for testing and final-stage manufacturing.
When factories relocate, the supply chains that support production also shift. This article looks at what’s driving semiconductor factory relocation and what it means for the supply chains behind it.
Why the Global Map for Semiconductor Production is Shifting
New fabs may be the focus, but relocation is also affecting where testing and packaging happen. Companies are rethinking how and where packaging, testing, and assembly should take place.
These decisions are closely tied to proximity, infrastructure, and supply chain control. For example, when a fab is built in Germany, the supporting ecosystem often follows. You need specialty chemicals, gases, clean room supplies, and capital equipment for photolithography and etching. The same pattern applies in Southeast Asia, where lower operational risk and a skilled labor force are drawing attention from major players.
Government support is also a driving factor reshaping semiconductor supply chains. In the United States, funding under the CHIPS Act is tied to local buildout and domestic supply resilience. In the European Union, countries like Germany are offering long-term energy incentives and regulatory fast-tracking to secure investment. Meanwhile, in Southeast Asia, national agencies are promoting advanced manufacturing zones with tax breaks, technology parks, and logistics incentives aimed specifically at semiconductor operations.
For example, Amkor Technologies recently relocated its $2 billion advanced packaging and test facility to a larger site in Arizona, citing customer demand, project scope, and alignment with U.S.-based manufacturing goals.
What is developing is a network of regionally self-sufficient semiconductor supply chains, each designed to serve a specific market while reducing exposure to political uncertainty or transport bottlenecks.
Want a visual breakdown of each stage of the semiconductor supply chain, from wafer production to final delivery? Check out our infographic on the logistics of semiconductor manufacturing.
Southeast Asia’s Expanding Role
While much attention is focused on new front-end fabs in the U.S. and Europe, the back end of the supply chain is also changing, and Southeast Asia is benefiting from this change.
Countries like Malaysia, Vietnam, Singapore, and the Philippines are attracting new investment in assembly, testing, and packaging. These locations already have strong labor pools and long-standing expertise in electronics manufacturing. What’s changing is the scale and strategic intent.
Southeast Asia is increasingly seen as more than a cost-effective location for outsourced services. It is being integrated into regional ecosystems where chips can be tested and finalized closer to final product assembly sites or export hubs. For example, European wafer fabs planning advanced production capacity may increasingly ship to Southeast Asia for final-stage processes.
The Supply Chain Consequences
This realignment places new pressure on global logistics. Semiconductor cargo is highly sensitive, and cargo movements must adhere to the special requirements of shipping semiconductor capital equipment, raw materials, and finished devices. Among those requirements:
- Cleanroom machinery must be protected from vibration and tilt in transit
- Raw materials often require end-to-end temperature control.
- Pallets of chips for air transport should get extra protection against moisture, particularly during the monsoon season in Asia
- Transit times must be carefully aligned with installation windows at new production sites, many of which are still under construction. In several cases, customers now request logistics planning months in advance of when factory operations begin.
Airfreight continues to be the primary mode for most semiconductor tooling moves, particularly when timelines are tight or factory readiness requires precise installation windows.
Each stage in the relocation process raises new questions.
- What routes support temperature and humidity monitoring through multiple transshipments?
- Can bonded warehouses near new testing sites maintain security and compliance during handover?
- How should oversized machines be crated for intercontinental moves without risking delays at customs or damage in transit?
These shipments demand specialized planning, with every step coordinated across borders, languages, and regulatory systems.
The Rise of a New Semiconductor Network
As the semiconductor industry spreads across more regions, logistics providers are being asked to do more than move freight. They are now expected to integrate planning, compliance, and real-time control into a single process.
Relocating advanced manufacturing sites isn’t unique to semiconductors. This example of a plant move from Singapore to Malaysia shows the kind of logistical planning and coordination required in any cross-border shift.
Visibility tools, packaging specifications, and regulatory documentation must be aligned across multiple jurisdictions. Temperature deviations, vibration events, or missed pickups must be flagged immediately. In many cases, production timelines depend on it. And customers demand 24/7 visibility on shipment status, with proactive notification from their freight forwarder (as well as alternate solutions) if delivery deadlines are jeopardized.
This is the new reality of semiconductor logistics. It mirrors the industry’s broader shift away from centralization and toward a more diversified, region-based structure. Every factory relocation changes more than a location. It changes the supply chain around it. Supporting that shift requires expert semiconductor logistics partners with regional expertise, real-time responsiveness, and experience managing high-stakes semiconductor cargo.
Positioning for What Comes Next
The semiconductor industry is in the midst of a massive upheaval, with regional supply chains being built to reduce supply chain risk and bring chip production closer to where chips are used. This shift requires precise logistics execution, globally. If you’re navigating that change, the right logistics partner can make all the difference.
Get in touch with a Dimerco specialist to discuss your supply chain needs. We support semiconductor moves at every stage, from factory setup to time-critical equipment delivery.
Download our eBook, Navigating the Global Semiconductor Supply Chain, for a closer look at how chips move from blueprint to buildout.
