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| Source: yotldtd.com |
Thailand maintains a significant position in the regional electronics supply chain, ranking as the 13th largest global exporter of electronic products and parts and holding the second rank among emerging economies for semiconductor manufacturing (Krungsri Research, 2024; Reuters, 2024).
Historically, the country’s involvement in this sector has been predominantly concentrated in the downstream segment and part of back-end operations like Assembly, Testing, and Packaging (ATP/OSAT) (Jongwanich & Kohpaiboon, 2025; Atthi, 2025). Yet, global players such as Sony and Toshiba, operate in this country (Digital Watch Observatory, 2025; Reuters, 2024). Within global supply-chain disruptions and China-US tensions, global investors view Thailand’s neutrality and its stability as an advantage (Digital Watch Observatory, 2025). This supports Thailand's plan to upgrade its sectors into high-end segments such as chip design and wafer fabrication (front-end activities) (Koty, 2021).
The establishment of the National Semiconductor and Advanced Electronics Policy Committee (NSB) on October 25, 2024, signaling high-level commitment as it is chaired by the Prime Minister (Thailand Board of Investment, 2024; Atthi, 2025; Jongwanich & Kohpaiboon, 2025). This commitment is a signal for a comprehensive ecosystem (Atthi, 2025; Thailand Board of Investment, 2024; Jongwanich & Kohpaiboon, 2025).
Their target is to attract a new wave of FDI for at least 500 billion baht (approximately US$15 billion) by 2029 (Atthi, 2025; Thailand Board of Investment, 2024). This followed a period of heightened investment interest, evidenced by inbound investment applications reaching a decade-high value of 1.14 trillion baht ($33.5 billion) recorded in 2023 (Thailand Board of Investment, 2024).
Critics suggest this focus should be broadened to include other electronic devices such as communications, sensor imaging, and optical devices, where Thailand has historically shown strong export performance (Jongwanich & Kohpaiboon, 2025).
As a strategy the Board of Investment (BOI) offers extensive incentives: Front-end investments (such as silicon wafers, and Wafer FAB) requiring advanced technology are eligible for a 10-year exemption of Corporate Income Tax (CIT) (Thailand Board of Investment, 2024). Back-end investments (Wafer SORT, Die Bank, Assembly, IC Testing) receive CIT exemptions of eight years (for machinery investments of at least 1.5 billion baht) or five years (for smaller investments) (Thailand Board of Investment, 2024). Hence, investments in Research & Development are eligible for an additional CIT exemption of up to five years (Thailand Board of Investment, 2024).
Human Capital Development (HCD) is fundamental to realize the national strategy (Atthi, 2025). Thus, Thailand aims to train and reskill 80,000 -86,000 workers over the next five years (2025–2030), including developing 1,400 researchers at the master’s degree and PhD level (Jongwanich & Kohpaiboon, 2025; Thailand Board of Investment, 2024).
The Thai Microelectronics Center (TMEC) operates as Thailand’s first and only R&D for small volume production wafer fab. It was founded in 1997 and has operated since April 2004 in Chachoengsao province (Atthi, 2025). TMEC utilizes 6-inch wafers, 500 nm technology, and focuses on "More-than-Moore" (MtM) devices, including MEMS, sensors, and silicon photonics (Atthi, 2025). The presence of such a facility is crucial to enabling local firms to turn chip designs into prototypes (Atthi, 2025).
However, successful implementation requires overcoming significant challenges such as competition from neighboring countries like Malaysia, which targets over $100 billion in investment (TG Thailand, n.d.). Besides, around 70 investment projects, worth approximately 300 billion baht, are cancelled because of procedural delays and the complexity of required permits, then BOI is attempting to resolve (Atthi, 2025; Thailand Board of Investment, 2024; Jongwanich & Kohpaiboon, 2025). Policy success ultimately depends on political will, sustained resources, and effective governance (Atthi, 2025; Thailand Board of Investment, 2024; Jongwanich & Kohpaiboon, 2025).
References
Atthi, N. (2025, March 27). Global semiconductor ecosystem and wafer fab investment opportunity in Thailand[Conference presentation]. 20th NSTDA Annual Conference (NAC 2025), Chachoengsao, Thailand. National Science and Technology Development Agency (NSTDA). https://www.nstda.or.th/nac/2025/wp-content/uploads/2025/04/nac14-1315-นิธิ-อัตถิ.pdf
Digital Watch Observatory. (2025, February 7). Thailand pushes for semiconductor growth amid trade tensions. Digital Watch Observatory. https://dig.watch
Jongwanich, J., & Kohpaiboon, A. (2025, April 11). Thailand’s new semiconductor strategy: Ambitious but challenging.FULCRUM. https://fulcrum.sg
Koty, A. C. (2021, September 14). High-tech in Thailand: Incentives for R&D, semiconductors, and smart packaging.ASEAN Briefing. https://www.aseanbriefing.com/news/high-tech-in-thailand-incentives-for-rd-semiconductors-and-smart-packaging/
Krungsri Research. (2024, January). Thailand industry outlook 2024–2026: Electrical & electronics industry. Bank of Ayudhya Public Company Limited (Krungsri). https://www.krungsri.com/en/research/industry/industry-outlook/electrical-electronics/io-elec-2024
Reuters. (2024, April 18). Thailand aims to become semiconductor hub, eyes billions in investment. Reuters.https://www.reuters.com/technology/thailand-aims-become-semiconductor-hub-eyes-billions-investment-2024-04-18/
TG Thailand. (n.d.). Recruitment and trends in the semiconductor industry. TG Human Resource Services (Thailand) Co., Ltd.
Thailand Board of Investment (BOI). (2024, December 4). Thailand’s new semiconductor board approves framework of national strategy and skilled workforce development to prepare for 500 billion baht expected foreign investment wave.One Start One Stop Investment Center (OSOS). https://osos.boi.go.th
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