How Thailand Aims To Ramp Up Semiconductor Chips Business Amid US-China Trade War
Thailand ranks second behind India in an analysis of top emerging economies for semiconductor manufacturing, according to a 2024 report by consulting firm Kearney.
U.S. President Donald Trump has been signing a series of executive orders ever since taking charge of the Oval Office in his second term. This includes announcing a 10% tariff on Chinese imports as part of a broad plan to improve the U.S. trade balance.
Amid renewed trade war between US and China, Thailand aims to prepare an initial draft of a strategic plan for its semi-conductor chips sector in the next 90 days in order to attract fresh investment.
Thailand makes a case for semiconductor chips
The country’s national semiconductor board will be roping in a consultancy to develop an industry roadmap, Narit Therdsteerasukdi, the secretary-general of the Thailand Board of Investment (BOI) told Reuters.
Narit, who reports to the premier, is also working on making pitches in the United States and Japan to pump in semiconductor investments in his country.
Thailand ranks second behind India in an analysis of top emerging economies for semiconductor manufacturing, according to a 2024 report by consulting firm Kearney.
The country is targeting around 500 billion baht in new investments in semiconductors by 2029.
“We focus on the power electronics (segment). For example, the semiconductor used in the electric vehicle, data centre or energy storage system,” said Narit. “We think that this is our strength.”
Also Read: How ByteDance may get Nvidia’s most powerful AI chips despite US’ “China ban”
Thailand, Southeast Asia’s second-largest economy after Indonesia, witnessed a 35% jump in the value of inbound investment applications last year to a decade-high of 1.14 trillion baht ($33.5 billion).
“I expect the value of total applications (in 2025) to be more than last year’s figure, driven by investment in the electronics and digital sectors,” Narit said.
Some of the big companies with chip-related facilities in the country include Massachusetts-based Analog Devices, Japan’s Sony and Toshiba. German chipmaker Infineon and a subsidiary of Taiwan’s Foxsemicon Integrated Technology have also announced new projects.
