By Hon. Mark Kennedy
In this strategic policy piece, Hon. Mark Kennedy underscores Southeast Asia’s growing importance as a linchpin in the global competition for technological leadership and supply chain resilience. He argues that countries like Vietnam, Malaysia, and Singapore are becoming critical partners for the United States and its allies in advancing semiconductor innovation, AI development, and economic diversification—thereby reducing dependence on China and fortifying democratic influence in the Indo-Pacific.
Kennedy highlights Vietnam’s aggressive push to become a regional semiconductor hub, as well as the broader regional momentum in Malaysia, Singapore, and beyond. With $235 billion in foreign direct investment (FDI) in 2024, Southeast Asia is outpacing China and attracting strategic interest from both the U.S. and Europe. The region’s digital economy is projected to reach $2 trillion by 2030, offering massive potential for aligned U.S. investment in cloud infrastructure, AI, and digital governance.
However, Kennedy warns that the U.S. risks losing ground. Without joining binding trade frameworks like CPTPP and RCEP, and with proposals like the AI Dispersion Framework potentially hampering U.S. companies, Washington could cede influence to authoritarian tech powers like China. He calls for a more pragmatic, tiered export control regime that balances national security with Southeast Asian development, enabling secure, responsible tech growth across the region.
To succeed, Kennedy recommends:
- Upgrading the tech ecosystem from assembly to advanced R&D and chip design.
- Strengthening IP and data governance.
- Investing in talent and infrastructure.
- Encouraging AI applications in diverse sectors and languages.
- Supporting trusted, cost-effective legacy chip production in Southeast Asia and nearby allies like Mexico.
Ultimately, Kennedy positions Southeast Asia as a decisive front in shaping a democratic, open, and innovation-driven digital order. The U.S. must act with urgency and precision—not to contain AI, but to build trusted technology partnerships that advance security, prosperity, and freedom in the Indo-Pacific.
