Thailand boosts chip investment to power electric vehicle industry

The Board of Investment (BoI) is set to ramp up investments in computer chips to bolster the burgeoning electric vehicle (EV) industry in Thailand. This initiative aligns with the state’s strategy to establish a national semiconductor board.

As domestic EV manufacturing gains traction, driven by increased foreign investment, the development of related industries becomes crucial, stated Narit Therdsteerasukdi, secretary-general of the BoI.

“We need to support investment in semiconductors, smart electronics and circuit boards as well.”

This decision followed an announcement from Finance Minister Pichai Chunhavajira, who revealed that economic ministers had approved the proposal to create a national semiconductor board aimed at upskilling workers in the semiconductor industry.

The approval came after the weekly meeting of economic ministers, chaired by Prime Minister Srettha Thavisin, which took place yesterday.

Thailand has fallen behind other nations in terms of skilled semiconductor workers, and private sector involvement is essential to address the shortage in domestic semiconductor manufacturing, Pichai noted.

The government plans to send Thai workers to Taiwan for training, leveraging the island’s renowned semiconductor industry, he added.

In addition to human resource development, the BoI will continue efforts to attract foreign investors to Thailand.

Narit recently signed a memorandum of understanding with HSBC Thailand to enhance the promotion of foreign direct investment, aiming to position Thailand as an investment hub in ASEAN.

“With HSBC’s international connection network, the company can help to connect Thailand with international corporates.”

The BoI is scheduled to hold an investment roadshow in Osaka, Japan, next week, followed by a tour in the Middle East in July. These events aim to encourage entrepreneurs to invest in S-curve industries, which include new-generation cars and smart electronics, reported Bangkok Post.

Investment applications submitted to the BoI surged by 94% year-on-year in the first quarter of this year, totalling 724 project proposals. The investment value reached 228 billion baht (US$ 6.2 billion), marking a year-on-year increase of 31%.