Thailand plans to draft a strategic plan for its semiconductor sector within 90 days as it aims to attract investment amid U.S. President Donald Trump’s renewed trade war with China. Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment (BOI), announced that the national semiconductor board will hire a consultancy to develop an industry roadmap.
Narit, who reports directly to the prime minister, is organizing investment roadshows in the United States and Japan to promote Thailand as a semiconductor manufacturing hub. The ongoing trade tensions between the U.S. and China have disrupted global semiconductor supply chains, prompting many companies to shift operations to Southeast Asia. President Trump’s recent announcement of a 10% tariff on Chinese imports signals further trade disruptions.
Thailand experienced a significant 35% rise in inbound investment applications last year, totaling a decade-high 1.14 trillion baht ($33.5 billion). Narit expects further growth this year, especially in the electronics and digital sectors.
According to a 2024 Kearney report, Thailand ranks as the second-best emerging economy for semiconductor manufacturing, trailing only India. The country is targeting 500 billion baht in new semiconductor investments by 2029, focusing on power electronics used in electric vehicles, data centers, and energy storage systems.
Major semiconductor companies with operations in Thailand include Massachusetts-based Analog Devices, Japan’s Sony and Toshiba, Germany’s Infineon, and a subsidiary of Taiwan’s Foxsemicon Integrated Technology. The BOI noted that investments in printed circuit board manufacturing—a vital component in devices like smartphones and EVs—have surged since 2023 due to the trade war.
Narit highlighted Thailand’s neutrality as a significant factor for investors choosing the country. However, competition remains fierce, especially from Malaysia, which accounts for 13% of global chip testing and packaging and is targeting over $100 billion in semiconductor investments.