Semiconductors are vital to modern life, powering everything from medical devices and clean energy to AI and national defense. Indonesia seeks to build its own semiconductor industry not only for economic growth but also to gain independence and security in shaping global technological innovation. By studying the U.S. semiconductor revival, Indonesia has a blueprint and opportunity to carve out its role in the industry, gaining market share, technology, and expertise.
The U.S. experience highlights that building a semiconductor sector requires more than financial investment—it requires skilled talent, technological depth, and a strong support ecosystem. Indonesia's first step is to develop a skilled workforce through training programs and partnerships with global tech universities and companies. Many Indonesians already possess valuable experience in the semiconductor industry, and the government must create an ecosystem that offers incentives and a sense of purpose, encouraging skilled professionals to return home and contribute to the industry’s growth.
Indonesia can establish a competitive semiconductor industry by developing a research and development (R&D) hub in a strategic location with access to global networks. By focusing on niche areas like Internet of Things (IoT) chips and power management, the country can attract global firms through a compelling business environment, similar to the U.S. CHIPS Act, which offers tax incentives and grants. Indonesia's advantages include a youthful workforce, abundant resources like tin, nickel, and silica sand, and a favorable location near key Asian markets. Strengthening local supply chains will reduce production costs and improve resilience.
Joint ventures with global companies such as TSMC, Intel, or Samsung could accelerate technological growth and build local expertise through technology transfer agreements. By developing a self-sustaining supply chain and focusing on self-reliance, Indonesia has the potential to become a key player in the global semiconductor market, blending economic ambition with strategic national goals.
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