Government urged to implement national semiconductor strategy due to international competition in trade
Thailand Urged to Develop Comprehensive National Semiconductor Strategy
The Thai Semiconductor Industry Trade Association (THSIA) has called on the Thai government to develop a comprehensive national semiconductor strategy to boost exports and address global trade uncertainties. The strategy, if implemented, would focus on several key pillars, including accelerating chip design, initiating wafer fabrication, enhancing photonics technology, and creating a long-term master plan emphasizing local procurement.
Naiyavudhi Wongkomet, THSIA's Vice President, expressed concern over the US's transshipment issues and the challenges of shifting production bases. He urged the Ministry of Commerce and the Ministry of Foreign Affairs to become involved in the master plan, highlighting the complexity of the semiconductor industry and global trade challenges.
Kittisak Ngern-ngok-ngam, Senior Director of Business Development at Delta Electronics (Thailand) Plc, emphasized the importance of "Made in Thailand" products in response to Trump's tariff policy. Delta invests around 8.3% of its revenue into research and development (R&D) to develop products tailored to each country's factory needs. The company is keen to use Thai suppliers who manufacture locally to prevent product misappropriation.
Swaek Prakitritanon, Vice President and Secretary-General of the Thai Printed Circuit Board (PCB) Association, stated that the semiconductor industry is a long-term game. He noted that the real risk isn't just taxes but the ongoing trade war. He also highlighted that non-tariff barriers are difficult to address but also present significant opportunities.
The global market's ability to increase export share to other regions remains uncertain, according to Naiyavudhi. He pointed out that Malaysia has already developed a national semiconductor strategy, and Thailand is lagging behind, risking a decline in Thailand's global market share if no action is taken.
The Board of Investment (BOI) is expected to lead the master plan, according to Naiyavudhi. The strategy aims to evolve beyond electronics assembly, targeting investment growth and positioning Thailand as a stable, neutral manufacturing hub free from geopolitical conflict. This requires cross-ministerial involvement to address the complexity of the semiconductor industry and global trade challenges like U.S. transshipment uncertainties.
In summary, the national strategy called for by THSIA focuses on diversified semiconductor capabilities, government-industry collaboration, local content promotion, and navigating global trade uncertainties through a master plan underpinned by cross-sectoral government support. The relocation of production is a long game, involving the entire supply chain, and Thailand needs to prepare for the long term, with a focus on skilled labor, green energy, and the fact that they export a significant amount of electronics.
- The Thai Semiconductor Industry Trade Association (THSIA) has stressed the need for Thailand to develop a comprehensive national semiconductor strategy not only to boost exports, but also to navigate global trade uncertainties in the business, finance, and politics arena.
- Kittisak Ngern-ngok-ngam, from Delta Electronics (Thailand) Plc, has underscored the importance of locally manufactured products in the investing sphere, as a response to political decisions such as Trump's tariff policy.
- Swaek Prakitritanon, from the Thai Printed Circuit Board (PCB) Association, has emphasized that the semiconductor industry is a long-term game, involving the entire supply chain, and highlighted that addressing non-tariff barriers presents significant opportunities in culture, technology, and global trade.
