Thailand has formally entered Southeast Asia’s high-stakes semiconductor race, unveiling its first national roadmap aimed at transforming the country from a backend electronics hub into a strategic producer of high-value chips over the next 25 years.
The roadmap, approved on Wednesday by the newly constituted National Semiconductor Board, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, sets phased milestones for 2030, 2040, and 2050. At its core is an ambition to reposition the country as a critical node in the regional and global chip supply chain, moving decisively beyond basic assembly into design-led and upstream manufacturing.
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Competing and complementing Singapore and Malaysia
Thailand’s strategy places it in a complementary rather than confrontational position against regional leaders Singapore and Malaysia, both of which already occupy entrenched roles in the global semiconductor ecosystem.
Singapore commands roughly 10 per cent of global wafer fabrication and chip design, underpinned by world-class R&D infrastructure and deep integration with multinational firms. Malaysia, meanwhile, dominates the outsourced semiconductor assembly and testing (OSAT) segment, accounting for 13-15 per cent of global market share.
Thailand is charting a different course. Rather than directly competing in advanced front-end fabs or cutting-edge R&D, it is targeting power electronics, automotive semiconductors, sensors, analog, photonics and discrete chips. These segments are closely aligned with its existing industrial strengths in electric vehicles, medical devices, AI data centres and smart manufacturing.
Lower operating costs, aggressive incentives and specialised industrial clusters are expected to give Thailand an edge in mid-tier, high-growth segments.
The roadmap: From assembly to fabrication
The National Semiconductor Strategy is structured around five strategic pillars:
- High-potential products: Prioritising power, sensor, photonics, analog and discrete chips critical to Thailand’s industrial base.
- Short-term strengthening: Consolidating Thailand’s existing leadership in OSAT and integrated circuit (IC) design over the next five years.
- Long-term upstream ambition: Gradually entering wafer fabrication, the most complex and capital-intensive stage of chipmaking, while nurturing “local champions” to reduce reliance on foreign technology.
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- Talent development: Allocating billions of baht to workforce training, with targets ranging from 17,500 to over 200,000 engineers by 2030 through partnerships with global universities and industry.
- Ecosystem building: Developing specialised semiconductor clusters in regions such as Lamphun and Lampang, backed by guaranteed clean energy, water security, streamlined regulations and semiconductor-specific trade agreements with the US, UK and EU.
The Board of Investment (BOI) is offering 15-year tax holidays, long-term low-interest financing, fast-track visas, land incentives within the Eastern Economic Corridor (EEC) and green-energy access via direct power purchase agreements. Around 70 semiconductor projects worth nearly THB 300 billion are already awaiting approval.
Why semiconductors matter to Thailand
Semiconductors are foundational to the country’s broader technology ambitions. Electronics already account for over 25 per cent of Thai exports, generating more than US$50 billion annually. As global supply chains realign– accelerated by US-China decoupling — Thailand sees chips as essential to sustaining growth and avoiding stagnation in traditional manufacturing.
Without deeper participation in semiconductors, Thailand risks being locked into low-margin assembly work while demand for chips surges across EVs, AI, IoT, data centres and advanced automation. The roadmap is also central to the government’s “Thailand 4.0” vision, which seeks to shift the economy toward innovation-led, high-value manufacturing and boost GDP growth to 2 per cent in 2026.
A sector on the rise
Thailand’s semiconductor and electronics sector has expanded rapidly over the past decade. The market grew from US$4.88 billion in 2023 to US$8.46 billion in 2025, and is projected to reach US$11.79 billion by 2030, with annual growth ranging between 7.6 and 20 per cent.
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Between 2018 and late 2025, the country recorded 1,748 electronics investment applications worth THB 1.17 trillion (US$34.4 billion). Global heavyweights such as Infineon, NXP, Murata, Foxconn (Fiti) and others have expanded or established significant operations, reinforcing Thailand’s status as a key OSAT and automotive semiconductor hub.
The long game
While figures around US$73.5 billion in investment likely reflect broader multi-decade ambitions rather than near-term commitments, the intent is unmistakable. As BOI secretary general Narit Therdsteerasukdi noted, the semiconductor industry is on track to become a US$1 trillion global market by 2030, and Thailand intends to be more than a passive consumer.
Thailand’s journey is less about overtaking Singapore or Malaysia, and more about filling strategic gaps in Southeast Asia’s chip ecosystem. Like a master craftsman moving from assembly to design, the country is laying the groundwork to own more of the semiconductor value chain—patiently, pragmatically, and with an eye on long-term competitiveness.
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