Thailand Targets Semiconductor Sector Amid US-China Trade Tensions
Thailand aims to develop a strategic plan for its semiconductor industry within the next 90 days to attract investments amidst the escalating trade war between the US and China.
The country's National Semiconductor Board has commissioned a consultancy to create an industry roadmap, according to Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment (BOI).
Narit plans to conduct roadshows in the US and Japan to promote semiconductor investments in Thailand.
The global semiconductor industry has faced turmoil due to the tech supremacy competition between the US and China. Tariff announcements and supply chain shifts to Southeast Asia have intensified in recent months.
Thailand, the second-largest economy in Southeast Asia, experienced a significant 35% increase in inbound investment applications in 2023, reaching a decade-high of 1.14 trillion baht ($33.5 billion).
"Electronics and digital sectors are driving investment applications this year," Narit stated.
Based on a 2024 report by consulting firm A.T. Kearney, Thailand ranks second behind India as a top emerging economy for semiconductor manufacturing.
Thailand targets approximately 500 billion baht in new semiconductor investments by 2029, focusing on power electronics, particularly in electric vehicles, data centers, and energy storage.
Companies with semiconductor facilities in Thailand include Analog Devices, Sony, Toshiba, Infineon, and Foxsemicon Integrated Technology.
Thailand has also experienced a surge in investments in printed circuit board manufacturing, a critical component for electrical devices ranging from smartphones to electric vehicles.
"The trade war is the main reason," Narit explained. "Thailand's neutrality is a key factor in attracting investors to our country."
Malaysia, a major hub for chip testing and packaging, poses significant competition, with plans to invest over $100 billion in the sector.