Thailand eyes becoming fourth largest producer of electronic circuits
Thailand is looking to increase its global electronics circuit market share to become the fourth largest producer and is setting up a national Electronics Circuit Centre to meet labour demand for this industry, Thai Printed Circuit Association (THPCA) president Pithan Ongkosit said on Thursday.
Achieving this goal requires robust support and collaboration from both public and private sectors, he told the media at a joint press conference with the Board of Investment (BOI) and the Hong Kong PrinteAssociation (HKPCA).
Currently, Thailand holds a 4% market share in electronic circuits.
“With the establishment of 50 additional factories supported by BOI investments, this share could rise to 10%, positioning Thailand as the fourth largest in the world after China, South Korea, and Japan. Such growth would create 50,000 to 80,000 jobs in the electronics circuit sector," Pithan noted.
The global PCB market is expected to reach 3 trillion baht ($86.17 billion) by 2026, with an average annual growth rate of 3.3%. HDI PCBs, which are known for their compact size, high efficiency, and lightweight design, are expected to grow at a rate of 11.1%. Flexible PCBs are also in high demand for wearable technology and smart devices, with the market expected to reach 530 billion baht ($15.29 billion) by 2026.
To strengthen the industry, THPCA is collaborating with the Thai Microelectronics Centre (TMEC) to establish the Thailand Electronics Circuit Centre (TECC). This will focus on research and development, strengthening the local supply chain, producing PCB prototypes, and continuously developing personnel and electronic products in the country. These efforts are intended to promote the growth and sustainability of Thailand's electronics industry.
BOI Secretary General Narit Therdsteerasukdi promised to provide all necessary assistance to the industry.
Citing changing global economic dynamics that have resulted in a significant shift of major manufacturing bases to Thailand, he stated that Thailand's infrastructure, highly skilled workforce, and robust supply chains have made it an appealing destination for global investors, particularly in the electronics and printed circuit board (PCB) industries.
According to the BOI, Thailand's electrical appliances and electronics industry is critical to the country's economy, ranking first among export goods and accounting for a quarter of total exports. Over the last three years, investment promotion applications in this sector have totalled 535 billion baht.
The country also saw a significant increase in 2023, with investment in the sector reaching 334.8 billion baht, a 2.5-fold increase over 2022 and accounting for nearly 40% of total investment promotion applications.
This growth is especially notable in the PCB and PCBA sectors, where investment has increased dramatically from 15.6 billion baht in 2021 and 15.9 billion baht in 2022 to more than 100.860 billion baht in 2023.
This momentum will continue to grow steadily in 2024. In the first five months alone, BOI received 27 investment promotion applications for PCB and PCBA totalling 36.044 billion baht, primarily from leading companies in China, Taiwan, Japan and Hong Kong.
Stressing that this moment marks a significant turning point for Thailand's sustainable electronics manufacturing base in the country, Narit said that the BOI has promoted its new investment promotion measures, expanding support for the PCB industry across the entire supply chain.
"This initiative includes private sector collaboration to foster industry linkages and create business opportunities for Thai operators in component manufacturing and raw material supply to these PCB manufacturers," he said.
The latest move came as THPCA joined HKPCA and BOI to organise a trade exhibition of electronic circuits and services in Asia, known as the Thailand Electronics Circuit Asia (THECA). This platform aims to portray Thailand's potential and progress as the ASEAN and global hub for electronics circuit manufacturing. It also serves as a platform for job seekers to connect with businesses and industry experts from across Asia, Europe, and North America.
With innovative displays from 200 leading companies and over 20 international seminars, the event is expected to attract over 3,000 attendees globally exploring business matching activities and opportunities for upskilling and reskilling. The event is scheduled for July 24-26 at the BITEC Exhibition and Conference Centre, Bangkok.
