In the second half of 2026, the Asia-Pacific foundry industry is ushering in a new round of development opportunities. Driven by the reconstruction of global supply chains, accelerated carbon neutrality goals, and the application of emerging technologies, the Asia-Pacific foundry industry is undergoing profound changes, with digitalization and green transformation becoming the main themes of industry development. This article will comprehensively analyze the latest development trends of the Asia-Pacific foundry industry from multiple dimensions including market demand, technological innovation, and policy environment, providing a forward-looking perspective for investors.
Asia-Pacific Foundry Industry: Market Size and Regional Layout
According to the latest industry data, the Asia-Pacific foundry market size reached $185 billion in the first half of 2026, a year-on-year increase of 7.2%. It is expected to continue to maintain steady growth in the second half, with the annual market size expected to exceed $380 billion. This growth is mainly driven by the accelerated industrialization process in emerging economies in the region and the dual drivers of upgrading and transformation of traditional manufacturing.
In terms of regional layout, China, Japan, and South Korea remain the three core markets in the Asia-Pacific foundry industry, accounting for 65% of the region's total output value. It is worth noting that Southeast Asian countries are becoming new growth poles. Particularly, Vietnam, Thailand, and Malaysia, with their cost advantages and policy support, have seen an average annual growth rate of foundry capacity exceeding 12%, becoming important destinations for global foundry industry transfer.
As the largest foundry producer in the Asia-Pacific region, China's foundry output reached 42 million tons in the first half of 2026, a year-on-year increase of 6.8%. Among them, the proportion of high-end precision castings increased to 35%, reflecting the continuous optimization of the industrial structure. Japan and South Korea maintain technological leadership in automotive lightweight and semiconductor equipment precision casting, with higher product added value.
Regional Characteristics and Competitive Advantages
- China: Complete industrial chain, obvious scale advantages, transforming from a "foundry big country" to a "foundry strong country"
- Japan: Leading precision casting technology, focusing on high-value-added products, with prominent advantages in the automotive lightweight field
- South Korea: Global competitiveness in semiconductor equipment casting, leading in digital transformation
- Southeast Asia: Significant cost advantages, undertaking industrial transfer, fast development speed, huge potential
- India: Rapid market growth, strong policy support, rise of local enterprises
Market Demand: Dual Drivers of Automotive and Semiconductor Industries
In the second half of 2026, the market demand for foundry products in the Asia-Pacific region shows structural changes. The traditional automotive industry remains the main consumer of foundry materials, but with the rapid development of new energy vehicles and smart vehicles, the demand for automotive lightweight casting has surged, becoming a key factor driving industry growth.
Data shows that in the first half of 2026, new energy vehicle sales in the Asia-Pacific region reached 12.5 million units, a year-on-year increase of 35%, driving a significant increase in demand for lightweight technologies such as integrated die casting and aluminum alloy casting. International automakers such as BMW and Tesla are accelerating the layout of integrated die casting capacity in the Asia-Pacific region, while Asia-Pacific foundry giants such as Japan's Aichi Steel and China's Lizhong Group are expanding related capacity to seize market opportunities.
At the same time, the demand for precision castings from the semiconductor industry continues to grow. With the rapid development of emerging technologies such as 5G, artificial intelligence, and the Internet of Things, the demand for high-precision, high-reliability castings in semiconductor equipment manufacturing is continuously increasing. The expansion of semiconductor capacity in the Asia-Pacific region has driven a 22% year-on-year increase in the trade volume of related castings, becoming a new growth point for the foundry industry.
Rise of Emerging Application Fields
In addition to the traditional automotive and semiconductor fields, several emerging applications are becoming new engines for growth in the foundry industry:
- Humanoid Robots: As the mass production process of humanoid robots accelerates, the special casting supply chain is facing a trillion-level incremental market
- Data Centers: Demand for high-thermal-conductivity aluminum alloy castings is surging, with Thai and Japanese enterprises jointly developing new materials
- New Energy Equipment: Wind power, photovoltaics and other new energy equipment have strong demand for large, complex castings
- Medical Equipment: Increased demand for high-precision castings in precision medical equipment is driving industry technology upgrades
Technological Innovation: Digitalization and Green Transformation
Technological innovation is the core driving force for the transformation and upgrading of the Asia-Pacific foundry industry. In the second half of 2026, digitalization and green transformation have become the two main lines of industry development, profoundly changing the face of traditional foundry industry.
Accelerated Digital Transformation
The application of smart manufacturing technology in the foundry industry is becoming increasingly widespread. Digital twin, artificial intelligence, big data analysis and other technologies are deeply integrated with traditional foundry processes, promoting the improvement of production efficiency and product quality. According to industry statistics, digital investment by Asia-Pacific foundry enterprises increased by 28% year-on-year in the first half of 2026, mainly applied in the following areas:
- Construction of smart foundry workshops, achieving real-time monitoring and optimization of production processes
- AI-based quality inspection systems, improving product qualification rates
- Digital supply chain management, improving response speed and collaborative efficiency
- Application of 3D printing technology in casting molds and prototype manufacturing
Notably, breakthroughs have been made in the application of blockchain technology in foundry supply chain finance. In June 2026, the Asia-Pacific Foundry Supply Chain Finance Blockchain Platform was officially launched. Through smart contracts and distributed ledger technology, it has effectively alleviated the funding pressure of SMEs and improved supply chain financing efficiency. This innovative model is being adopted by more and more foundry enterprises.
Green Foundry Leading Sustainable Development
Driven by carbon neutrality goals, green foundry has become an inevitable choice for industry development in the Asia-Pacific region. In the first half of 2026, the carbon emission intensity of the Asia-Pacific foundry industry decreased by 5.2% year-on-year, reflecting the effectiveness of the industry's green transformation.
Green foundry technologies mainly include the following aspects:
- Clean energy substitution: The application proportion of clean energy such as natural gas and electricity in the casting process has increased
- Waste sand regeneration: The resource utilization rate of foundry waste sand reached 65%, an increase of 10 percentage points compared to 2025
- Emission reduction technology application: The penetration rate of environmental protection equipment such as efficient dust removal, desulfurization and denitrification exceeds 80%
- Lightweight design: Reducing material usage through material science and structural design optimization
The Japanese foundry industry is at the forefront of green transformation, with many companies achieving carbon neutrality goals. Chinese foundry enterprises are increasing environmental investment and eliminating backward capacity under policy promotion, leading to increased industry concentration. Southeast Asian countries are achieving leapfrog development by leveraging latecomer advantages and directly introducing advanced green foundry technology.
Policy Environment and Investment Opportunities
The policy environment is an important factor affecting the development of the foundry industry. In the second half of 2026, major economies in the Asia-Pacific region have successively introduced policies to support the upgrading of the foundry industry, creating a favorable environment for industry development.
Increased Policy Support
China's "14th Five-Year Plan" for the Foundry Industry Development has entered a critical implementation period, focusing on supporting the research and industrialization of high-end foundry materials and precision casting technologies. Japan has launched the "Green Foundry 2026" plan, providing special funds to support enterprises in emission reduction and digital transformation. South Korea has listed the foundry industry as a "new growth engine" industry, offering tax incentives and R&D subsidies.
Southeast Asian countries are attracting foreign investment through preferential policies, such as land use tax reductions in Vietnam, special zones for the foundry industry in Thailand, and the "Foundry 4.0" transformation plan in Malaysia. These policies have effectively promoted the agglomeration and upgrading of the foundry industry in the region.
Investment Hotspots and Risk Warnings
Based on the analysis of Asia-Pacific foundry industry trends, we believe the following areas deserve attention:
- Automotive Lightweight Casting: Significant investment opportunities in integrated die casting, aluminum alloy casting and other technologies
- Semiconductor Precision Casting: With the expansion of semiconductor capacity in Asia-Pacific, the demand for related castings continues to grow
- Green Foundry Technology: Broad investment prospects in environmental protection equipment, clean energy applications and other fields
- Digital Transformation: Smart foundry equipment, industrial software and other fields have high growth potential
- Southeast Asia Capacity Expansion: Increasing investment opportunities in foundry capacity in Vietnam, Thailand and other regions
At the same time, investors also need to pay attention to the following risk factors:
- Risks of raw material price fluctuations, especially the uncertainty of metal prices such as aluminum and copper
- Increased compliance costs due to stricter environmental policies
- Equipment investment risks caused by accelerated technological iteration
- Potential impacts of international trade frictions on the supply chain
- Challenges to traditional casting models from rising labor costs
Future Outlook: Global Competitiveness of the Asia-Pacific Foundry Industry
Looking ahead, the Asia-Pacific foundry industry will play a more important role in the global value chain. With the acceleration of technological innovation, optimization of industrial structure, and deepening of green transformation, the Asia-Pacific region is expected to transform from a "foundry manufacturing center" to a "foundry innovation center".
By 2030, it is expected that a more balanced layout will be formed in the Asia-Pacific foundry industry: China will continue to maintain its scale advantage, Japan and South Korea will focus on high-end precision casting, Southeast Asian countries will become an important supplement to global foundry capacity, and India will become an emerging foundry power with market potential and policy support.
For investors, grasping the two main lines of digital transformation and green transformation in the Asia-Pacific foundry industry, focusing on high-growth fields such as automotive lightweight and semiconductor precision casting, as well as capacity expansion opportunities in Southeast Asia, will likely yield substantial returns. At the same time, it is also necessary to pay attention to risk factors such as policy changes, technological iteration, and international trade environment, and make prudent investment decisions.
In conclusion, the Asia-Pacific foundry industry is in a critical period of transformation and upgrading in the second half of 2026, with both challenges and opportunities. Only those foundry enterprises that can adapt to the trends of digitalization and green transformation, continuously improve technological innovation capabilities and product added value, can stand out in the fierce market competition and achieve sustainable development.
