It’s 2026 and the global chip race is on. Across the world, governments are scrambling to capture a segment of the lucrative market for semiconductors and integrated circuits, the building blocks of the modern economy.

Integrated circuits – or chips – are now an essential component of virtually every type of electronic device, from washing machines to smartphones. Due to breakthroughs in AI and cloud computing, chip demand is higher than ever before. Global exports of integrated circuits doubled between 2016 and 2024, jumping from $414 billion to $818 billion.

In addition to being extremely lucrative, control of chip supply chains has become central to the strategic competition between the United States and China. Southeast Asia has long played an important role in these supply chains. The region currently accounts for around 26 percent of global chip exports, up from around 20 percent two decades ago.

But more important is what lies ahead. As Western countries move to “de-risk” semiconductor supply chains, this is creating opportunities for Southeast Asian states that want to expand their role in global production networks. Once peripheral players in assembly and testing, they have the potential to establish themselves as critical nodes in global chip production and investment.

Six of the 11 nations of Southeast Asia are making a concerted effort to carve out a role for themselves in the semiconductor industry: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Today, we’re looking at which countries are succeeding – and which are falling behind.