With supply chains shifting, Thailand seeks semiconductor investors to bolster its electronics industry.
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| Thailand fast-tracks semiconductor investments as Trump’s trade war with China reshapes global supply chains. Image: ChicHue |
Bangkok, Thailand — February 7, 2025:
Thailand is accelerating plans to boost its semiconductor sector, aiming to finalize a strategic blueprint within 90 days as it looks to attract fresh investment amid U.S. President Donald Trump’s renewed trade war with China.
The country’s national semiconductor board will hire a consultancy to map out an industry roadmap, said Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment (BOI). Reporting directly to the prime minister, Narit is also leading investment roadshows in the U.S. and Japan to draw semiconductor manufacturers to Thailand.
The global chip industry has been rattled by intensifying U.S.-China tensions, with supply chains shifting toward Southeast Asia. Further disruptions are likely in Trump’s second term, following his announcement of a 10% tariff on Chinese imports as part of a broader effort to rebalance trade.
Thailand, Southeast Asia’s second-largest economy after Indonesia, saw inbound investment applications soar 35% last year to a decade-high of 1.14 trillion baht ($33.5 billion).
“I expect this year’s applications to surpass last year’s, driven by investment in electronics and digital industries,” Narit said.
A 2024 Kearney report ranked Thailand second only to India among emerging economies for semiconductor manufacturing. The country is targeting 500 billion baht in new semiconductor investments by 2029, focusing on power electronics—chips used in electric vehicles, data centers, and energy storage systems.
Major firms with chip-related operations in Thailand include Analog Devices, Sony, Toshiba, Infineon, and a subsidiary of Taiwan’s Foxsemicon Integrated Technology. Investments in printed circuit board manufacturing, essential for everything from smartphones to EVs, have also surged since 2023, according to the BOI.
“The trade war is a key factor,” Narit said. “Investors see Thailand as a neutral ground.”
Still, Thailand faces stiff competition from Malaysia, which handles 13% of global chip testing and packaging and is targeting over $100 billion in semiconductor investment.