Thailand's Board of Investment (BoI) is actively seeking to attract increased foreign investment in advanced semiconductor production this year, amid a surge in interest from Chinese and Taiwanese companies looking to expand their footprint in the country. Wirat Tatsaringkansakul, the BoI Deputy Secretary-General, highlighted the growing trend of businesses eyeing Thailand, particularly for printed circuit boards, as a strategic move to mitigate geopolitical risks.
Tatsaringkansakul noted that this influx of investment is expected to bring in companies specializing in advanced technology, forming clusters that enhance Thailand's semiconductor manufacturing capabilities. The country's robust infrastructure, skilled workforce, and tax incentives make it an appealing destination for advanced manufacturing, especially amidst current geopolitical tensions.
In 2023, Thailand recorded a total investment of 800 billion baht in semiconductor production, according to BoI records, signaling a strong growth trajectory in the sector. Recent investments include Sony Device Technology (Thailand) (SDT)'s commitment of 2.3 billion baht towards establishing a new semiconductor fabrication facility, known as Building 4.
Takeshi Matsuda, Managing Director of SDT, revealed plans to relocate some upstream semiconductor technologies from Japan to Thailand in the near future, further solidifying Thailand's position as a key semiconductor manufacturing hub. The newly established facility spans 66,370 square meters and will primarily focus on assembling image sensors for automotive safety, micro OLED displays for augmented reality and virtual reality applications, and laser diodes for data centers.
Production at the new plant is expected to commence by mid-year, with the manufacturing of image sensors for automotive applications slated to begin next year. Matsuda emphasized the importance of the automotive sector and data centers in the Thai economy, projecting an addition of 2,000 employees to SDT's workforce within the next three years.
Terushi Shimizu, CEO of Sony Semiconductor Solutions (SSS), highlighted the significance of semiconductors in driving innovation and shaping the digital era, underscoring the strategic importance of Thailand and Japan's collaboration in this domain.
The Sony Group, with 17 projects totaling 22 billion baht in investment and employing 8,000 people in Thailand, has applied for a new investment in integrated circuits worth 5 billion baht, as per BoI disclosures.
SDT's executive director, Somchok Vukthong, revealed that the company's major production lines are focused on image sensors used in cameras, further illustrating Thailand's growing prowess in semiconductor manufacturing.