Thailand Urged to Act on Semiconductor Strategy
Experts warn the country is falling behind rivals in a crucial industry, calling for a long-term government plan to secure its place in the global supply chain
- Experts are urging Thailand to develop a national semiconductor strategy to remain competitive with neighboring countries like Malaysia and Vietnam, which already have clear plans.
- A proposed framework suggests focusing on high-impact areas like chip design, entering wafer fabrication with a smaller "legacy fab," and leveraging the country's existing strength in photonics.
- The government is called upon to provide long-term stability through a dedicated budget and policies that promote the production and procurement of locally made chips.
- Without urgent action, Thailand's current 2% global market share in chip packaging and assembly is at risk of being halved within seven years.
Thailand is at risk of being left behind in the global semiconductor supply chain, with experts urging the government to quickly develop a national strategy to attract investment and boost the industry.
While neighbouring countries like Malaysia, Vietnam, and Singapore have all moved forward with clear roadmaps, Thailand has yet to produce a national plan.
This puts the country at a significant competitive disadvantage in an industry that is vital to its export economy, accounting for over 40% of total exports.
The warning came during a seminar held on 15 August 2025 by the Trade Policy and Strategy Office (TPSO) and Thammasat University.
Speaking at the event, Naiyavud Wongkomet, Vice President of the Thai Semiconductor Industry Trade Association, laid out a four-part framework for the industry’s development.
Naiyavud highlighted the importance of focusing on chip design, which requires less capital and can have a high impact.
He also urged the government to consider a long-delayed move into wafer fabrication, starting with a smaller, more affordable "legacy fab" plant.
While acknowledging Thailand’s existing strength in packaging and assembly, he warned that its 2% global market share could be halved within seven years without urgent action.
A promising area for growth, according to the expert, is photonics. Thailand has a strong base in this technology, which uses light to generate, transmit, and process information.
The country's existing supply chain and established presence of both domestic and Chinese players make it a viable area to focus on.
Photonics is an increasingly important part of modern technology, with applications ranging from fibre-optic communication and lasers to medical diagnostics and advanced manufacturing.
Naiyavud believes that by prioritising this segment, Thailand could establish a leadership role in a key industry.
"The semiconductor industry is a long-term game that requires continuous planning and problem-solving, not just addressing immediate issues," Naiyavud said.
He proposed that the government commit to a long-term budget, perhaps 10 billion baht annually for 20 years, to provide stability.
He also called for policies that promote "Local Chips" to link with other Thai industries and for government agencies to prioritise purchasing locally manufactured products.
While acknowledging that the Board of Investment (BOI) is currently drafting a national strategy, Naiyavud stressed that a collaborative effort from multiple ministries, as well as the private sector and academia, will be essential for success.
