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Electric vehicles

ASEAN's Strategic Opportunity in the Electric Vehicle Boom

Strategic Insights

— 2 min read

The Association of Southeast Asian Nations (ASEAN) is positioned to become a hub for electric vehicle (EV) production and battery manufacturing, driven by the region's expansion of semiconductor capacity and its strategic location in the global EV value chain.

ASEAN's semiconductor capacity is crucial for the production of EVs, as these vehicles rely heavily on advanced chips for various functions, including battery management systems, power electronics, autonomous driving features, and infotainment platforms. The global semiconductor market is projected to reach $1 trillion by 2030, with ASEAN's share expected to rise from $31.3 billion in 2023 to $52.9 billion by 2032. The region's countries, such as Malaysia, Vietnam, and the Philippines, already have a competitive advantage in assembly, testing, and packaging (ATP) - particularly for EV-relevant applications.

The region is also rich in critical minerals necessary for both EV batteries and semiconductor manufacturing, including nickel, rare earths, cobalt, and tin. Indonesia, Vietnam, the Philippines, and Malaysia hold significant reserves of these minerals, which are essential for lithium-ion batteries and high-performance semiconductor elements.

The region's EV ambitions are accelerating, with Thailand remaining ASEAN's largest EV market in 2024, accounting for 13% of total vehicle sales. Indonesia and Vietnam also saw rapid growth, with EV sales tripling and nearly doubling respectively, reaching market shares on par with countries like Spain and Canada.

Key Takeaways:

  • ASEAN's semiconductor market is expected to reach $52.9 billion by 2032, up from $31.3 billion in 2023.
  • The region's countries have a competitive advantage in assembly, testing, and packaging (ATP) - particularly for EV-relevant applications.
  • ASEAN is rich in critical minerals necessary for EV batteries and semiconductor manufacturing, holding significant reserves of nickel, rare earths, cobalt, and tin.
  • Thailand remains ASEAN's largest EV market, accounting for 13% of total vehicle sales in 2024.
  • Indonesia and Vietnam saw rapid growth in EV sales, with EV sales tripling and nearly doubling respectively.
  • The region has attracted significant investment from global firms, including Intel, Amkor, and VinFast.
  • ASEAN's strategic strength lies in its complementarity, with countries like Indonesia supplying raw materials, Malaysia leading in chip testing and packaging, and Vietnam offering large-scale EV assembly.

Statistics:

  • Global semiconductor market projected to reach $1 trillion by 2030 (ERIA, 2025).
  • ASEAN's share of the global semiconductor market expected to rise from $31.3 billion in 2023 to $52.9 billion by 2032.
  • ASEAN's EV market share in 2024: Thailand (13%), Indonesia (6%), Vietnam (4%).
  • EV sales growth in Indonesia (tripled) and Vietnam (nearly doubled) in 2024.

Sources:

  • ERIA (2025) - Global semiconductor market projected to reach $1 trillion by 2030.
  • International Energy Agency's Global EV Outlook 2025 - ASEAN's largest EV market in 2024.
  • ASEAN Framework for Integrated Semiconductor Supply Chain (AFISS).
  • Indonesia's downstream industrial policy - nickel export ban.
  • PT Infineon in Batam, producing over 450 million semiconductor units annually.

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