Thai-dal wave: Taiwanese electronics firms spark 30 billion baht boom in Thailand
The electronics industry of Thailand is set to experience significant growth as 20 new investments, amounting to 30 billion baht, have been approved by the Board of Investment (BoI). These investments are from Taiwan-based electronics firms that have shown intent to establish Thailand as their new export base.
The BoI indicated that this move is particularly noteworthy for manufacturers of printed circuit boards (PCBs), as they seek new investment locations to circumvent the effects of geopolitical conflicts, including the tensions between China and Taiwan. Additionally, operating costs in Thailand are considerably lower than in the US and Europe, making it a very attractive investment destination.
The incentives for investment were offered to the Taiwanese firms between January and August.
Narit Therdsteerasukdi, the secretary-general of the BoI, said some firms will produce PCBs, while others will produce notebooks for HP, in reference to the US-based information technology firm, Hewlett-Packard.
Taiwan holds a notable position in the global electronics manufacturing sector, commanding a 35% market share. Its prominence is even more significant in the semiconductor sector, where it commands a 65% global market share, with Taiwan Semiconductor Manufacturing Co., being considered a market leader.
“If we include other electronics companies in Thailand, especially those from China and Japan, the combination can make the country a major PCB manufacturing base in ASEAN.”
The BoI has plans to encourage more electronics firms to invest in Thailand under its five-year investment promotion strategy. This strategy, planned for 2023-27, aims to support investment in high-tech, green and smart industries, as well as businesses driven by creativity and innovation. These sectors are expected to drive a new economy and increase competitiveness.
“We are in talks with more Taiwanese firms to encourage them to invest here.”
Taiwan is among the board’s target countries in Asia, with its investment expected to facilitate growth in S-curve industry development in the Eastern Economic Corridor (EEC).
The EEC, encompassing parts of Chon Buri, Rayong and Chachoengsao provinces, is expected to evolve into the country’s high-tech industry hub, reported Bangkok Post.
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