BoI prepares chip strategy
"We have nearly finished drafting the strategy and expect to submit it to the Semiconductor Board within 1-2 months," said Narit Therdsteerasukdi, secretary-general of the BoI.
The Semiconductor Board, officially known as the National Semiconductor and Advanced Electronics Policy Committee, called for strategic approaches to develop more experts in the semiconductor and advanced electronics industries.
He said the new strategy would pave the way for Thailand to become a leader in advanced electronics manufacturing.
"In addition to production, we also want to become a hub for R&D," said Mr Narit.
"We should also become a centre for skilled personnel development and the regional supply chain."
He was speaking during a forum on smart electronics, part of the 2025 Thailand Electronics Circuit Asia (THECA 2025), a three-day event held at Bitec Bang Na showcasing updates in the electronics industry and encouraging business-to-business matchmaking. THECA 2025 ends today.
Late last year, the Semiconductor Board approved a framework for the development of a skilled workforce to prepare for a new wave of foreign direct investment in the semiconductor and advanced electronics sectors, which could bring at least 500 billion baht into the country by 2029.
According to the BoI, investment in these two sectors continues to increase, with up to 500 projects worth more than 700 billion baht in Thailand between 2022 and June 2025.
In the printed circuit board (PCB) category, there were 180 projects valued at more than 200 billion baht.
The BoI dubbed the rapid growth as a "big wave of PCB investment" as many leading companies decided to expand their businesses into Thailand.
Among them is Mektec Manufacturing Corporation (Thailand), a subsidiary of NOK Corporation, Japan's largest PCB manufacturer by sales volume, which was granted investment incentives from the BoI to increase its production to serve growing customer demand.
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Bangkok Post
3 hours ago
- Bangkok Post
BoI prepares chip strategy
The Board of Investment (BoI) is preparing to propose a new strategy enabling Thailand to evolve beyond producing advanced electronics. "We have nearly finished drafting the strategy and expect to submit it to the Semiconductor Board within 1-2 months," said Narit Therdsteerasukdi, secretary-general of the BoI. The Semiconductor Board, officially known as the National Semiconductor and Advanced Electronics Policy Committee, called for strategic approaches to develop more experts in the semiconductor and advanced electronics industries. He said the new strategy would pave the way for Thailand to become a leader in advanced electronics manufacturing. "In addition to production, we also want to become a hub for R&D," said Mr Narit. "We should also become a centre for skilled personnel development and the regional supply chain." He was speaking during a forum on smart electronics, part of the 2025 Thailand Electronics Circuit Asia (THECA 2025), a three-day event held at Bitec Bang Na showcasing updates in the electronics industry and encouraging business-to-business matchmaking. THECA 2025 ends today. Late last year, the Semiconductor Board approved a framework for the development of a skilled workforce to prepare for a new wave of foreign direct investment in the semiconductor and advanced electronics sectors, which could bring at least 500 billion baht into the country by 2029. According to the BoI, investment in these two sectors continues to increase, with up to 500 projects worth more than 700 billion baht in Thailand between 2022 and June 2025. In the printed circuit board (PCB) category, there were 180 projects valued at more than 200 billion baht. The BoI dubbed the rapid growth as a "big wave of PCB investment" as many leading companies decided to expand their businesses into Thailand. Among them is Mektec Manufacturing Corporation (Thailand), a subsidiary of NOK Corporation, Japan's largest PCB manufacturer by sales volume, which was granted investment incentives from the BoI to increase its production to serve growing customer demand.
Bangkok Post
10-08-2025
- Bangkok Post
Reform agenda to the fore
Although Thai businesses are relieved the US has reduced its import tariff on Thai goods to 19%, on par with other countries in the region, improving long-term competitiveness remains a challenge for domestic firms, in addition to attracting foreign investment. Finance Minister Pichai Chunhavajira recently said regardless of US tariff levels, Thailand should expedite structural economic reforms. Mr Pichai said the country must transform into a technologically advanced nation to achieve GDP growth of more than 3% in the long term. Without action, Thai GDP growth may only reach 2.2%, he warned. TIME TO UPGRADE Nonarit Bisonyabut, a research fellow at Thailand Development Research Institute, said the reciprocal tariff policy initiated by US President Donald Trump has made the global economic pie smaller. He said Thailand needs to adapt and become more competitive, stop supporting inefficient sectors, liberalise the service sector, and attract artificial intelligence (AI) and digital industries to the country. "The Trump tariffs shrink the global economy, decrease trade, and a could lead to a decline in global foreign direct investment. When these three components shrink, it means nations must become more capable," said Mr Nonarit. "When the economic pie is large, it's easier to share. Now that the pie is shrinking, we need to return to our fundamentals, especially competitiveness. We must produce goods that are in demand and enhance our technological capabilities. Our children must become more skilled, and we need to tap into new markets." First of all, the government must admit that subsidising some parts of the economy such as agriculture may be inefficient, he said. State assistance must be changed and free financial grants need to be shifted to measures that improve productivity and increase the use of technology, said Mr Nonarit. Thailand must pivot towards industries that are more skill-intensive, meaning labour-intensive industries will no longer be sustainable in the country, he said. As for the service sector, Mr Nonarit said it is time to allow more competition, raise standards and eliminate domestic monopolies, opening up opportunities for small players to better compete in the market. Regarding investment promotion via the Board of Investment (BoI), which is performing well, he said the BoI needs to develop further, especially in terms of target industries. Mr Nonarit said the BoI must accelerate investment in AI and various digital industries. "We must figure out how to make such industries flourish in Thailand and ensure a long supply chain. This means going beyond the BoI's broad-based privileges -- we need tailored, specific incentives for individual businesses," he said. "If we want to become a trading nation or a transshipment hub, even with tensions between China and the US, we can still bring goods to be warehoused in Thailand, establishing a global trade centre." For example, if Thailand wants to become a centre for equipment repair, the country needs to create policies that allow imported equipment to be warehoused here temporarily without taxation, said Mr Nonarit. The country must realise that various industries have different needs and require tailored policies to encourage development here, he said. INVESTOR APPEAL Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said Thailand possesses growth potential aligning with the chamber's "Unlocking New Growth" strategy launched earlier this year. The trade war presents a good opportunity for Thailand to reshape its economy and enhance its appeal to investors in the short, medium and long term. In the short term, he said Thailand needs to boost business confidence, streamline business operations, and urgently reform regulations and bureaucracy to improve transparency and efficiency. This includes re-evaluation of various permits, such as environmental impact assessments, BoI approvals, and processes for importing foreign workers, said Mr Poj. The criteria for investment promotion under the BoI also needs to be reviewed to better attract foreign investors, he said. Furthermore, clear economic policies are essential for businesses to effectively plan and invest, particularly when it comes to free trade agreement negotiations with key partners. For the medium term, Mr Poj urged the government to enhance infrastructure and industrial capabilities, as well as support traditional sectors such as food production, agriculture and tourism. By leveraging innovation and technology, he said these industries could significantly elevate their value. In addition, the government must support entrepreneurs by providing access to capital and knowledge, enabling them to thrive in the digital age. For the long term, Mr Poj called for strategic investments in education and labour reforms to ensure the workforce is equipped with essential skills in AI and automation, as well as knowledge about net-zero emissions. Creating a supportive ecosystem for the next generation of entrepreneurs is vital, he said. "Thailand has growth potential despite challenges such as the trade war and political uncertainty," said Mr Poj. "We must embrace reforms in rules, regulations and mindsets to simplify and enhance investment opportunities. This approach is crucial to attract both domestic and international investors." INCREASING LOCAL CONTENT Manufacturers in Thailand should focus more on using locally sourced raw materials in their production to avoid additional tariffs for transshipment to the US via Thailand, said the Federation of Thai Industries (FTI). "We need to develop appropriate measures for the transshipment issue," said Kriengkrai Thiennukul, chairman of the FTI. Transshipment is another US tariff barrier that could be applied in addition to the 19% import duty on products from Thailand. Vietnam faces a 20% reciprocal tariff and 40% levy on products exported from the country of origin via Vietnam to the US. This tactic targets Chinese manufacturers seeking to bypass US duties, according to media reports. The FTI is conducting a survey covering 47 industries to establish how much domestic raw materials are used in their manufacturing processes. "We talked with entrepreneurs from more than 20 industries and found 17 of them have a local content rate of 40%," he said. "Manufacturers of internal combustion engine-powered cars use a greater amount of local content than other industries, amounting to 80%." It remains unknown how much local content the US is seeking for certain industries and whether the target is only materials or products coming from China. Thai officials hope to clear up the issue in discussions with the US. Transshipment tariffs are a new challenge for Thai manufacturers, possibly forcing the adaptation of investment plans if there are requirements concerning the proportion of locally sourced raw materials, said Mr Kriengkrai. He called on the government to consider establishing a new fund to help companies, particularly small businesses with a limited budget, to keep them aligned with the US's transshipment rules. Mr Kriengkrai said the US's new trade policies require Thailand to rejigger its priorities. "In the short term, our exports will face more price competition, while domestically we have to compete with imported products as we open our market to certain American products," he said. In the long term, the government and business sectors must work together to increase the productivity of manufacturers through greater use of innovative technologies and improving worker skills, said Mr Kriengkrai. AI FACTORY Supparat Sivapetchranat Singhara na Ayutthaya, vice-chairman of Thailand Data Center Association, said to remain relevant in the evolving global economy, Thailand must move beyond its traditional economic pillars of tourism, agriculture and low-cost manufacturing, positioning itself as a hub for advanced industries. This goal can be achieved by becoming either an indispensable node in global supply chains or a magnet for innovation and digital talent, said Mr Supparat. Thailand should capitalise on its geographical and geopolitical advantages to establish itself as the "AI factory" for Indochina, he said. This strategy involves ensuring continued access to the world's most advanced computing hardware, particularly the latest Nvidia graphics processing units, by implementing robust export control frameworks that meet international trust and compliance standards. Mr Supparat said such a policy would unlock significant capital flows into the digital infrastructure sector, potentially driving more than 500 megawatts of new data centre capacity within two years, representing more than US$5 billion in investment. "This will not only diversify the Thai economy, but also position the country as a regional digital powerhouse serving the broader Mekong and Southeast Asian region," he said. INFRASTRUCTURE UPGRADE Based on the World Economic Forum's Travel and Tourism Development Index 2024, Thailand had the lowest score in tourist services and infrastructure compared with its other dimensions. Patom Siriwattaprayoon, chief executive of PCL Hospitality, a management firm and consultancy, said Thailand needs to reform the sector to be seen as a high-value destination that can attract new tourism investment. He said the country needs to resolve long-standing issues concerning safety and the way Thailand is promoted, which could generate confidence among tourists and investors interested in new projects here. A start would be upgrading public transport that connects major airports serving the inner districts of tourist destinations, said Mr Patom. This type of infrastructure has yet to be fully developed and airports nationwide require expansion in the coming years, he said. The government should also accelerate the process of convincing unregistered hotels to enter the tax system to ensure fair competition and equal taxation, while ensuring safe stays for tourists, said Mr Patom. Poomchai Mattayompoppinyo, managing director of Southern project development at Sansiri Plc, said provinces with high potential such as Phuket should be regulated as special administrative districts, resembling the way Bangkok and Pattaya are administered. If enacted, this move could allow for more effective budget management to address the island's persistent problems, such as a lack of public transport, an insufficient road network, and water shortages, he said. This shift would benefit the booming tourism and real estate sector on the island, said Mr Poomchai. Phuket now has more than 2 million residents, long-stay workers and short-stay tourists. As a real estate developer, he suggested the government raise the leasehold period to 90 years from 30 years with the ability to extend, offering more prospective foreign buyers and investors an incentive to invest in Phuket. CALL FOR DIVERSIFICATION Ongart Kittikhunchai, president of the Thai Food Processors Association, said in the immediate term Thai businesses must expand into new markets to diversify risk and enhance their production processes to reduce costs, while simultaneously producing higher-quality goods. In the medium term, businesses must restructure to adapt to global changes, particularly regarding financial and management systems, he said. This restructuring is necessary to adjust to the US tariff hike and Thailand becoming an ageing society, said Mr Ongart. For the processed food industry, which is closely tied to the agriculture sector, it must diversify its product offerings, he said. Exporters should focus on creating a wider variety of innovative products, while ready-to-eat food producers must penetrate new overseas markets, said Mr Ongart. Sidthisak Limvatanayingyong, president of the Thai Silver Exporters Association, said the private sector needs government assistance in exploring new markets to lessen Thailand's dependency on the US, which represents 29% of the country's total silver jewellery shipments. He urged the government to finalise negotiations for a free trade agreement with the EU to benefit Thai exporters, including the silver jewellery segment. Mr Sidthisak said he hopes the government can also provide assistance to enhance production technology, such as facilitating the import of advanced technologies or fostering the development of local production technology. He said tax incentives would be vital to drive progress in this area. A manufacturing facility operated by Sony Device Technology (Thailand). Mr Supparat says Thailand should capitalise on its geographical and geopolitical advantages to establish itself as an AI factory for the region.
Bangkok Post
06-08-2025
- Bangkok Post
Second phase of stimulus plan gets nod
The cabinet has approved the second phase of the government's economic stimulus plan worth 18.4 billion baht, said Finance Minister Pichai Chunhavajira. This is part of the restructured 157-billion-baht budget originally allocated for the 10,000-baht digital wallet project. The news was announced by Mr Pichai after the weekly cabinet meeting on Tuesday. The cabinet previously rolled out 115 billion baht under the first phase of the plan. The remaining funds will now be directed toward boosting Thailand's competitiveness in key industries and investing in human capital to cushion against an expected economic slowdown this year. Mr Pichai said the second-phase package, reviewed and endorsed by the National Economic Stimulus Policy Committee, is designed to enhance the global competitiveness of Thai enterprises, particularly in targeted industries. The package also prepares the workforce for future economic instability. The initiative aims to counter potential risks from global developments such as Washington's reciprocal tariff measures and the Global Minimum Tax, while laying a foundation for long-term growth. Key components of the stimulus package include enhanced competitiveness for target industries worth 10 billion baht and investment in human capital development valued at 8.48 billion baht. The first portion will be allocated through the Board of Investment's Competitiveness Enhancement Fund for Target Industries, to support Thai businesses in adapting to global market changes. This will attract and retain major investors and mitigate the impact of protectionist US trade policies, as well as global tax reforms. In the short term, the programme will focus on digital technology skill development and industrial transformation. For the human capital portion, the money will be allocated through the Student Loan Fund (SLF). This is intended to expand access to education financing, enabling up to 139,000 students to secure loans.
