Assessing Southeast Asia countries’ potential in the semiconductor supply chain: an objectively weighting multi-criteria decision-making approach

Chia-Nan Wang, Nhat-Luong Nhieu (), Chen-Te Chiang and Yen-Hui Wang
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Chia-Nan Wang: National Kaohsiung University of Science and Technology
Nhat-Luong Nhieu: National Kaohsiung University of Science and Technology
Chen-Te Chiang: National Kaohsiung University of Science and Technology
Yen-Hui Wang: Chihlee University of Technology

Palgrave Communications, 2024, vol. 11, issue 1, 1-17

Abstract: Abstract The semiconductor industry serves as a key enabler of technological progress and economic growth on a global scale. With Southeast Asia emerging as a region of increasing importance in the global supply chain landscape, understanding the potential for its countries to participate in the semiconductor supply chain becomes crucial. Despite extensive research on global supply chain dynamics, a focused analysis on the role of Southeast Asia within this crucial industry has been notably absent, particularly considering recent geopolitical and economic shifts. This gap has been filled by employing a rigorously designed Multi-Criteria Decision Making (MCDM) approach that integrates the Criteria Importance Through Intercriteria Correlation (CRITIC) method and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). Data on fifteen indicators, including economic stability, technological innovation capacity, and infrastructural capabilities, were collected and identified through an extensive literature review and consultations with stakeholders. These indicators were weighted using the CRITIC method to reflect their relative importance, and each country’s position relative to an ideal solution was assessed using the TOPSIS method. It was revealed that countries such as Singapore and Malaysia possess significant potential due to their advanced technological infrastructure and stable economic environments. Other countries, like Vietnam and Indonesia, were also found to exhibit promising capabilities, albeit with certain limitations. The study highlights the varying strengths and strategic areas that should be considered by policymakers and investors to enhance integration into the global semiconductor supply chain. Significant contributions to the strategic decision-making process have been made by providing a nuanced analysis of the region’s readiness and identifying specific areas for investment and policy intervention. By offering a methodological framework that can be adapted to other regions and sectors, not only has an existing research void been filled, but the practical understanding of effectively leveraging Southeast Asia’s potential in the semiconductor industry has also been enhanced.

Date: 2024
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DOI: 10.1057/s41599-024-03768-x

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