Thailand’s semiconductor industry is urging the government to develop a national strategy to address global trade challenges and boost exports.

Industry leaders noted that Thailand lacks a comprehensive semiconductor plan, while countries like Malaysia already have one.

Naiyavudhi Wongkomet, vice president of the Thai Semiconductor Industry Trade Association, said uncertainty from shifting global production and US transshipment issues is affecting export prospects.

He called for a long-term master plan involving the Board of Investment, Ministry of Commerce, and Ministry of Foreign Affairs.

He emphasized the need for local procurement and collaboration across government sectors.

Delta Electronics (Thailand) invests about 8.3% of its revenue in R&D. Its senior director, Kittisak Ngern-ngok-ngam, said the government should target more specific groups to strengthen local manufacturing.

Swaek Prakitritanon of the Thai Printed Circuit Board Association warned that trade tensions and non-tariff barriers pose ongoing risks, highlighting the need for skilled labor and sustainable energy in the sector.

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🔗 Source: The Nation

🧠 Food for thought

1️⃣ Thailand faces a strategic timing paradox in the booming semiconductor market

Thailand is attempting to establish its semiconductor strategy during an exceptionally strong global growth period but lacks the foundational framework that competitors already have in place.

Global semiconductor sales reached $59.0 billion in May 2025, representing a 19.8% year-over-year increase, with the Asia Pacific region showing particularly robust growth of 30.5%1.

This creates both opportunity and pressure for Thailand. While the $700.9 billion projected market size for 2025 suggests significant potential, the country’s admission that it “lacks a comprehensive national semiconductor strategy” puts it at a structural disadvantage2.

The challenge becomes more acute when considering that neighboring Malaysia has already developed such strategic plans, giving them advantages in policy frameworks, talent development, and supply chain positioning.

Thailand’s late entry means it must simultaneously build institutional capabilities while competing for market share in an increasingly complex geopolitical environment marked by US trade restrictions and supply chain diversification pressures.

2️⃣ Private sector R&D investment signals industry confidence despite policy gaps

Thai companies are making substantial long-term investments in semiconductor capabilities even without comprehensive government strategy, suggesting strong private sector confidence in the market opportunity.

Delta Electronics Thailand’s commitment to investing 8.3% of revenue into R&D demonstrates significant private capital allocation toward developing country-specific manufacturing capabilities, indicating that companies see Thailand as a viable production hub despite current policy limitations.

This investment level aligns with the broader semiconductor industry’s growth trajectory, where global sales increased 19.8% year-over-year driven by demand for AI technologies and cloud infrastructure1.

The emphasis on “Made in Thailand” products and local supplier development suggests private companies are already implementing supply chain localization strategies that typically require government coordination.

This private sector momentum could provide the foundation for a national strategy but also highlights the urgency for policy frameworks to align with industry investment cycles.

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