DIGITIMES visited Singapore, Malaysia, and the Johor-Singapore Special Economic Zone (JS-SEZ) to explore how Microsoft is shaping the AI landscape in Southeast Asia. The team spoke with Jeth Lee, Microsoft’s Regional Legal Director for the Asia-Pacific, and Andrew Lau, Datacenter Launch Lead and Business Program Director for Microsoft Malaysia.

With the escalating global trade tensions and fresh US tariffs rattling the semiconductor sector, the underlying momentum in high-performance computing (HPC) and AI applications remains undeterred. Particularly, the ramp-up in 2-nanometer process production and sustained demand for advanced packaging technologies are fueling optimism among materials distributors. As a result, the traditionally slow first quarter of 2025 defied expectations, with industry players anticipating a strong second quarter as well.

Chinese panel manufacturers BOE Technology and TCL China Star Optoelectronics (TCL CSOT) have reportedly begun scaling back their LCD panel production in response to the tariff policies imposed by the Trump administration since January 2025, which have effectively blocked their export channels to the US. Despite strategic efforts to expand into alternative markets across Europe and Asia, these companies face significant challenges securing new customers in the short term. Compounding their difficulties, the Chinese government has reduced subsidies, leaving production cuts as their only viable recourse.