BOI offers investment incentives to draw chip manufacturers
The Thai government is looking to attract investment in the chip industry, with the Board of Investment (BOI) planning to hold talks with major producers later this year.
The government has tasked the Industry Minister and the BOI to accelerate investment in upstream electronics industries such as chips.
The electronics industry is one of the three target industries identified by Prime Minister Srettha Thavisin. The aim is to attract investment to upgrade industries and technologies in Thailand in the fields of digital business, electronics and electric vehicles (EV).
The government has identified the chip industry as a key priority for its economic development plans. Chips are essential components for a wide range of modern industries, including electronics, automotive and telecommunications.
The Board of Investment is offering a range of incentives to attract chip investment, including tax breaks, land subsidies and support for workforce development, its secretary general Narit Therdsteerasukdi said.
Chips are becoming a global strategic product in the transition to smart electronics and digital, as well as in the development of generative AI and digital transformation, which has generated a huge demand for cloud services around the world, Narit added.
Investors have already chosen Thailand as the production base for both PCB (Printed Circuit Board) and PCBA (Printed Circuit Board Assembly), making Thailand the No. 1 production base in ASEAN and No. 2 in the region after China.
The BOI's talks with chip producers are expected to begin in the coming months. The government is targeting investments in both the production of finished chips and the manufacture of chip components.
The government believes that attracting chip investment will help to boost Thailand's economy and create jobs. The chip industry is expected to grow rapidly in the coming years, creating new opportunities for businesses and workers.
The BOI's efforts to attract chip investment are part of a broader government strategy to develop Thailand's manufacturing sector. The government is also targeting investment in other industries, such as electric vehicles, renewable energy, and biotechnology.
