With a young population and rising digital aspirations, Cambodia has a unique opportunity to build a homegrown semiconductor ecosystem — by investing in science, skills, and infrastructure—with vision.

They’re in your pocket, glowing beside your bed, buzzing at your desk and riding with you on every commute. You didn’t see them arrive — but they’re here, quietly powering nearly everything you do. Semiconductors are everywhere.

And yet, most of us have never seen one, let alone imagined making one. We rely on chips every day — just like the rest of the world. But unlike the countries that build them, we’ve yet to make our mark.

Semiconductors — tiny chips that serve as the brains of electronic devices — are what keep smartphones smart, cars moving, planes flying and factories running. They power medical machines, online banking, smart TVs and solar panels. No phone call happens, no digital photo is taken and no video is streamed without them. The global semiconductor industry is worth more than $600 billion annually, and is expected to exceed $1 trillion by 2030, according to a study by McKinsey & Company.

It’s no surprise then that chips are at the centre of one of the world’s biggest power struggles. As the US and China wage a tech rivalry, semiconductor access has become a matter of national security. The US has imposed strict export controls on advanced chips and chipmaking equipment bound for China, while China is investing billions to build its own domestic semiconductor capacity. In this global reshuffling, a new space has opened for neutral, capable countries — especially in Southeast Asia — to step in.

That space is growing fast. ASEAN is becoming a critical part of the global chip supply chain. Vietnam has attracted major investment from Intel and Samsung, turning itself into a key player in chip packaging and testing. Malaysia has long been a global hub for outsourced semiconductor assembly. Singapore, with its advanced research ecosystem and skilled workforce, is leading in chip design and high-end fabrication. Even Thailand and the Philippines are stepping up.

What about Cambodia?

So far, Cambodia has stayed on the sidelines. Our economy still relies heavily on garments, agriculture, construction and tourism. Meanwhile, a significant share of domestic investment has gone into speculative real estate — chasing land prices and flipping properties. These may generate bursts of wealth, but they don’t build the technological backbone needed for long-term resilience. We remain dependent on imported technology for everything from traffic lights to smartphones.

But if we are serious about long-term competitiveness, we need to ask: what would it take for Cambodia to build its place in the world of semiconductors?

To be clear, we’re not starting from scratch. Some special economic zones (SEZs) already host light electronics manufacturing. Our youth are increasingly tech-savvy. And the country’s Digital Economy and Society Policy Framework 2021-2035 and Education Strategic Plan (ESP) 2024-2028 lay the groundwork for embracing digital transformation.

But having a policy is not the same as building a system.

Right now, Cambodia lacks a national semiconductor strategy. Our universities produce very few engineers trained in microelectronics or chip design. Research and development spending remain minimal — just 0.2% of GDP as of 2024, ranking Cambodia 88th globally and trailing far behind Thailand (1.3%) and Vietnam (0.4%), according to the 2024 Global Innovation Index.

For too long, we’ve channelled young people into degrees in business, economics and public administration. These are important fields, but we’ve overproduced them — far beyond market demand. A 2024 World Bank study found that over 70% of Cambodian higher education students are enrolled in non-STEM majors, while only 24% graduate with STEM degrees — and just 15% go on to work in STEM-related sectors.

Cambodia’s youthful population — about 29.5% are under the age of 15, and the median age is just 26.2 years as of 2025, according to the UN Population Fund — represents a powerful opportunity to build a future-ready workforce. But seizing it means changing how we think about education and careers.

That transformation starts early — not in a lab, but in the home. When a parent explains why water boils or why mangoes ripen, they are teaching science. When a child observes insects or asks how a fan spins, they are learning to think like a scientist. This is the science of observation, and every family can nurture it — without needing expensive equipment. If we want to build a generation of creators, not just consumers, this is where it begins.

The good news? The global tech realignment is creating a rare opening for countries like Cambodia. As major economies seek to “de-risk” their supply chains, they are actively looking for new, reliable partners. We may not be ready for advanced chipmaking yet, but there’s space to start smaller: in chip testing, packaging, printed circuit board (PCB) assembly, embedded systems, or supporting logistics. These are achievable goals — and the first steps toward something bigger.

So how do we spark Cambodia’s semiconductor movement? We see three key actions that stand out.

Invest in people

In schools, Cambodia has taken early steps to enhance STEM education by investing in labs, teacher training and digital tools. Programmes introducing coding, robotics, and electronics are emerging. However, these initiatives remain small in scale and fragmented.

Offering scholarships and running public campaigns to elevate the status of STEM careers — especially for girls — are crucial next steps. A national “Chip Literacy” programme, for example, could help young Cambodians understand the science behind the devices they use every day — and spark their curiosity.

But structural barriers remain.

The average STEM student-to-lab ratio in Cambodia is 206:1. Top universities still lack adequate space for engineering programmes. Between 2010 and 2019, Cambodia produced fewer than 3,400 research papers — compared to over 143,000 in Thailand and more than 53,000 in Vietnam, based on a 2024 World Bank report. Only 21% of STEM students are female, and just 11% of STEM faculty hold PhDs.

Investing in people means closing these gaps and giving young Cambodians the tools — and belief — to lead in technology, not just follow.

Build the basics.

A semiconductor system doesn’t grow in thin air. It needs reliable electricity, high-speed internet, clean water and efficient logistics. Cambodia should identify one or two tech-focused industrial zones — perhaps linked to existing SEZs — with incentives to attract high-tech manufacturers. 

At the same time, we must strengthen infrastructure that enables local SMEs to become service providers or suppliers within that ecosystem.

Start small—but think big.

Cambodia can’t and shouldn’t aim to build a chip fabrication plant tomorrow. Those require billions of dollars and extreme precision. Because Rome wasn’t built in a day, neither is a semiconductor industry. But we can begin by building an ecosystem around midstream and downstream segments — testing, packaging, sensor manufacturing, IoT devices or AI hardware applications tailored for agriculture, health or logistics.

Universities can start offering microelectronics minors or tech incubators, supported by ASEAN cooperation or donor partnerships. Vocational training centres can be aligned with private sector needs. And our trade agreements — including the Regional Comprehensive Economic Partnership (RCEP), one of the world’s largest free trade agreements — can position Cambodia as a friendly manufacturing destination for regional tech firms.

These actions won’t be easy. They require vision, coordination and a willingness to reimagine how we build skills, infrastructure and partnerships. But the rewards are immense. A foothold in the semiconductor value chain would not only diversify our economy but create high-value jobs for young Cambodians, reduce dependence on imported tech and strengthen our resilience in a fast-changing global market.

More than anything, it would give our youth something they sorely need: a sense of purpose in building the future.

When we empower the next generation not just to use technology but to understand and create it, we plant the seeds of transformation. The next great tech solution may not come from Silicon Valley or Seoul — but from a classroom in Phnom Penh, Battambang or Kampong Cham.

All it takes is curiosity. A plan. And the courage to believe that Cambodia, too, can shape the future — one chip at a time.

Meas Sopheak is a PhD student at Nagoya University, and Han Phoumin is a senior energy economist at the Economic Research Institute for ASEAN and East Asia (ERIA). The views and opinions expressed are their own.