Business
Thailand Charts Comprehensive Semiconductor Strategy Targeting Full Value Chain Integration
Thailand has launched a comprehensive national strategy to develop and expand its semiconductor industry, aiming to build a complete value chain by focusing on specific high-potential segments.
This long-term plan, outlined at a National Semiconductor and Advanced Electronics Policy Committee meeting on January 7, 2026, and presided over by Deputy Prime Minister and Minister of Finance Mr. Ekniti Nitithanprapas, sets phased development targets for 2030, 2040, and 2050. The strategy, drafted by the Thailand Board of Investment (BOI), leverages the country’s existing strengths in electronics manufacturing and supply chains.
The strategy prioritizes several key semiconductor segments where Thailand possesses strong infrastructure and supply chain depth:
- Power semiconductors
- Sensors
- Photonics
- Discrete devices
- Analog chips
These segments are strategically chosen due to their close ties to Thailand’s established electronics manufacturing base, serving critical sectors such as automotive, energy, data centers, and industrial applications. The demand for these chips is significantly driven by emerging technologies like electric vehicles, renewable energy systems, artificial intelligence infrastructure, and smart manufacturing, areas where major global manufacturers already operate in Thailand.
The long-term vision of this strategy aims for substantial growth and development by 2050, including:
- Attracting over 2.5 trillion baht ($79 billion) in investment.
- Developing more than 230,000 skilled workers.
- Establishing a fully integrated semiconductor ecosystem capable of producing “Made-in-Thailand” chips, thereby strengthening the country’s regional position. In the near term, the focus will be on expanding existing competitive advantages in semiconductor assembly and testing, integrated circuit design, and advanced electronics manufacturing, while also encouraging upstream investments like wafer fabrication and fostering local industry champions.
A broad package of incentives and policy measures supports the strategy, covering several critical areas:
- Investment: Financial support for capital expenditure and research and development.
- Talent: Expanded workforce development programs through international university partnerships and enhanced visa schemes.
- Technology: Upgrading national research infrastructure (including front-end research facilities), strengthening intellectual property protection, and promoting joint research initiatives between universities, startups, and industry.
- Infrastructure: Development of dedicated industrial clusters, improved water and flood management systems, enhanced power grid reliability, and increased use of clean energy.
Thailand’s electronics and electrical products constitute approximately one-quarter of its total exports. In 2024, electronics exports reached 1.86 trillion baht ($58.9 billion), with semiconductor exports alone totaling 436 billion baht ($13.8 billion). Between 2018 and November 2025, the electrical and electronics industry attracted 1.17 trillion baht ($37.0 billion) in investment across 1,748 projects, making it the largest sector by value with 19% of total promoted investment.
This growth has been primarily fueled by investments in printed circuit boards (PCB), semiconductor assembly and testing (OSAT), hard disk drives and components, and electronic parts for the automotive, medical, telecommunications, and smart electronics sectors. Several global semiconductor companies, including Germany’s Infineon, U.S.-based Analog Devices, Lumentum, and Microchip Technology, as well as Foxsemicon Integrated Technology from Taiwan, have expanded their operations in Thailand.
Source : ○ BOI : The Board of Investment of Thailand
