New plant in Thailand to help Delta Electric double parts output for EVs

The new production facility at the Bangpoo industrial estate, known as Delta Plant 8, produces all of the electronics control parts required to drive an EV, including combined control units, EV charging controllers, and DCDC converters.

Aligning with the new plant is a research and development (R&D) centre. Delta says that is a proof of the company’s commitment to support Thailand and the region's EV industry.

Aside from improving EV components, the R&D centre would showcase various power management solutions for EVs, as well as the company's most recent engineering and resources, the company’s top executive said.

Speaking to the media on Friday following the official opening ceremony of the new plant and R&D centre, Delta Electronics (Thailand) president Jackie Chang said that the new plant was critical for the company to bring more resources and engineering to Thailand in order to widen its market and enhance its products.

Delta Electronics currently operates two R&D centres – in Germany and Taiwan – to meet electronic solutions and engineering demands of customers in Europe and the United States.

"We at Delta Electronics (Thailand) want to support Thailand's goal to become an EV hub and be a part of the force driving the country's electronics industry to the next phase," he said.

All EV electric parts manufactured at Delta Electronics in Thailand are now 100% exported to Europe and the United States. However, Chang said that some parts would be used in Thailand once EV manufacturing begins in the kingdom.

He expected the new plant to help double EV-related production in both units and revenue.

According to Delta Electronics (Thailand), EV-related components accounted for approximately one-third, or 1.2 billion baht, of its 4-billion-baht revenue last year.

Delta Electronics (Thailand) CEO Victor Cheng pointed out that the opening of the new plant and R&D centre was a major milestone in Delta's 35-year history in Thailand.

"Our new Delta Plant 8 aims to meet rising demand for our EV products, and our new R&D centre would produce automotive power electronics locally for the first time,” he said. "We believe that our investments will greatly benefit Thailand's industry, economy and environment, as well as the Southeast Asia region."

Delta's EV products include onboard chargers and DC/DC converters for power management, traction inverters and motors for powertrain, as well as thermal management solutions and passive components. Delta's global customers include leading automakers from Europe, the United States, and Japan.

Cheng said that Delta already operated a plant in China, so Delta Plant 8 would not be engaged with that market.

Delta Thailand has been producing EV power electronics products for global customers since 2010 at Delta Plant 1, which has a floor space of 25,000 square metres. The new factory and R&D centre, spanning 30,400 square metres, will increase production capacity for the rapidly expanding EV business.

Highlighting another significance of the new Delta Plant 8, he said that 50% of the materials were sourced from domestic suppliers, with the exception of some parts, such as semiconductors, which Thailand does not yet have the technology to make.

The company aimed to increase domestic supplies to 80% within the next few years.

He noted that Delta's advanced automotive production encompasses all processes, from receiving raw material and storage to sub-processing, surface mount technology processing, printed circuit board assembly processing, assembly and burn-in, and final testing prior to shipment of finished goods.

"The investment of almost three billion baht in the facilities also showcases Delta's energy-efficient building automation solutions and smart manufacturing solutions to increase productivity and quality on production lines," Cheng added.

Meanwhile, despite the recent sluggishness in the global EV market, Delta Thailand's CEO remains optimistic due to its large customer base. He said the company remains cautious about moving forward given the current uncertainties and geopolitical tensions.

Delta Thailand president Chang added that in order to sustain its business in Thailand, the company recognised the importance of developing Thai talent in engineering and electronics.

Aside from continuing to build two more plants to meet market demand, he said the company would collaborate with six more local universities to educate Thai students in the EV and electronics industries. The company is currently collaborating with two leading universities in Thailand to provide test labs where students can learn and be trained in necessary skills.

Delta Thailand, which has operated in the country for 35 years, is also promoting growth in Thailand's S-curve focus industries of next-gen automotive and smart electronics, laying the groundwork for future expansion in Southeast Asia.