Thailand Semiconductor Market Size and Forecast by Product Type, Node Type, Application, and Distribution Channel: 2019-2032

Thailand Semiconductor Market Growth and Performance

• The Thailand semiconductor market size expanded to US$ 4.88 Billion in 2023.
• This projection indicates a CAGR of 7.6% between 2024 to 2032, resulting in the market value reaching US$ 9.83 Billion by 2032.

Thailand Semiconductor Market Outlook

The Thailand semiconductor market is gaining momentum as the country positions itself as a significant player in the global semiconductor industry. With its strategic location, robust infrastructure, and skilled workforce, Thailand offers a competitive advantage amid global supply chain disruptions and rising demand for digital technologies. The government’s proactive approach, including the establishment of the National Semiconductor Board, is driving Thailand semiconductor market development and attracting foreign investments. The outlook for the Thailand semiconductor market is highly promising. The government's initiatives, including the formation of the National Semiconductor Board chaired by Prime Minister Paetongtarn Shinawatra, provide a structured approach to policy-making, workforce development, and supply chain enhancements. Thailand’s goal to attract investments from global semiconductor giants such as Analog Devices, Sony, Toshiba, Infineon, and Foxsemicon Integrated Technology will bolster its competitiveness in the global market.

Finance Minister Pichai Chunhavajira emphasized the significance of the Board of Investment's (BoI) role in offering incentives like tax exemptions to promote the semiconductor industry. With a strategic focus on attracting businesses from China and Taiwan and leveraging geopolitical shifts, Thailand is becoming an attractive destination for semiconductor production and R&D.

Thailand Semiconductor Market Growth

The Thailand semiconductor market is poised for robust growth, with expectations to expand at a compound annual growth rate (CAGR) of X.88%, reaching a market volume of $XX.23 billion by 2027. In 2023, total investments in semiconductor production hit 800 billion baht, with notable contributions such as Sony Device Technology's 2.3 billion baht investment in a new semiconductor fabrication facility for automotive image sensors and laser diodes for data centers. The country's strategic initiatives aim to attract an additional 500 billion baht in semiconductor investments by 2029, focusing on power electronics for electric vehicles (EVs), data centers, and energy storage systems.

Thailand Semiconductor Market Trends

Key trends shaping the Thailand semiconductor market include:

• Strategic Investments: Major investments include Infineon Technologies' new backend semiconductor plant in Samut Prakan, set to begin operations in 2026, focusing on power modules for industrial and renewable energy systems.
• Public-Private Collaboration: The "Semiconductor and Advanced Electronics" workforce development project involves 17 leading Thai universities and private companies to build a skilled workforce.
• Supply Chain Diversification: The BoI's initiatives to attract semiconductor investments aim to mitigate geopolitical risks and strengthen supply chains.
• Sustainability Initiatives: Infineon's new plant will integrate on-site solar modules and green energy partnerships, aligning with global trends towards sustainable semiconductor manufacturing.

Thailand Semiconductor Market Competitive Landscape

The competitive landscape of the Thailand semiconductor market is becoming increasingly dynamic, with both multinational corporations and local enterprises enhancing their market presence. Key players include Sony, Toshiba, Analog Devices, Infineon Technologies, and Foxsemicon Integrated Technology. The establishment of the KMITL Academy of Innovative Semiconductor Manufacturing (KAISEM) further enhances Thailand's appeal to global semiconductor firms by offering tax incentives, subsidies, and robust infrastructure. Further, the BoI's strategy of organizing roadshows in the U.S. and Japan, coupled with the expansion of the Competitive Enhancement Fund, aims to attract more investments and create a favorable business environment for semiconductor companies.

Thailand Semiconductor Market Development

The Thailand semiconductor industry is advancing rapidly through collaborative efforts between the government, academia, and the private sector. The Kutsari Project, which involves leading educational institutions such as KMITL, INAOE, and CINVESTAV, focuses on building an advanced R&D ecosystem for semiconductor design and production. Additionally, the National Semiconductor Board's initiatives to establish a strategic roadmap and support infrastructure development are crucial for long-term industry growth.

Thailand Semiconductor Market Scope