Thailand eyes AI and chip hub status with push for high-value investments

Thailand plans to leverage its status as one of the world’s four largest net exporters of artificial intelligence (AI)-related hardware by attracting higher-value investments, creating skilled employment opportunities and promoting technology transfer as it aims to establish itself as a regional hub for AI and semiconductor industries.

Government spokesperson Ratchada Thanadirek said that the government would strengthen Thailand’s well-established electronics manufacturing sector by enhancing digital and energy infrastructure, expanding the pool of highly skilled workers, and boosting research and innovation.

She added that investment facilitation measures and the National Semiconductor Policy Committee would support efforts to position Thailand as a key manufacturing base and an integral part of the global technology supply chain.

The policy initiative follows an International Monetary Fund (IMF) assessment naming Thailand, Taiwan, South Korea and Malaysia as four leading net exporters of AI-related hardware.

The IMF’s definition covers selected categories of computer equipment and components, semiconductor-manufacturing machinery, processors and memory chips, rather than AI software or services. It said economies closely integrated into the technology supply chain had benefited from stronger demand linked to AI investment.

The IMF has earlier raised its 2026 economic growth forecast for Thailand to 1.9 per cent, supported by emergency fiscal measures and strong technology-related exports and investment. The latest government statement uses that assessment as support for a broader industrial strategy rather than announcing another change to the growth outlook.

Ratchada said the government wanted to convert the expansion of the global AI industry into investment, quality employment, technology transfers and higher incomes for Thai workers.

The long-term aim is to move Thailand beyond its traditional role as an electronics production and assembly base and into higher-value activities across the AI, semiconductor and advanced-electronics supply chains.

The government said it would support that transition through investment-friendly measures, stronger research capabilities and the development of workers with the engineering, digital and technical skills required by advanced manufacturers.

Energy infrastructure will also be important because semiconductor factories, data centres and other technology-intensive operations require large and reliable electricity supplies. The statement did not identify new investors or projects but said the government would continue promoting future industries as long-term drivers of economic growth.

Thailand has already outlined a longer-term semiconductor strategy focusing on areas connected to its existing industrial strengths, including power semiconductors, sensors, photonics, analogue chips, assembly and testing, integrated-circuit design and advanced electronics.

A draft strategy reviewed by the National Semiconductor and Advanced Electronics Policy Committee aims to attract more than THB2.5 trillion in investment by 2050, develop over 230,000 skilled workers and create a more complete domestic semiconductor ecosystem.

It also seeks to encourage investment further upstream, including wafer fabrication, while supporting Thai companies capable of participating in higher-value parts of the industry.

The Board of Investment has said Thailand’s established automotive, energy, data-centre and industrial manufacturing sectors could provide demand for the semiconductor segments prioritised under the strategy.

The government is also promoting what it describes as a people-centred approach to AI governance.

Ratchada said Thailand supported transparent and responsible AI development that balanced innovation with the protection of people’s rights and the public interest.

The government believes clearer governance and international cooperation on AI policy will strengthen investor confidence and improve Thailand’s competitiveness as companies assess where to locate technology operations in the region. Borneo Bulletin