On July 30, Thailand's Board of Investment (BOI) announced approval of two semiconductor investment projects totaling over 120 billion baht, jointly invested by an international packaging and testing major and a Japanese power semiconductor company, focusing respectively on advanced packaging technology and silicon carbide (SiC) power component production lines. This move not only marks an upgrade in Thailand's position in the semiconductor industry chain but also heralds a new round of restructuring in the automotive chip and high-performance computing supply chains.
Billion-Baht Investment Targets Advanced Packaging and SiC
According to information released by BOI, the first project will set up an advanced packaging and testing plant in Thailand's Eastern Economic Corridor (EEC), targeting high-end applications such as AI chips, 5G communications, and automotive electronics. The plant plans to introduce wafer-level packaging (WLP) and system-in-package (SiP) technologies, with mass production expected in 2028 and an initial monthly capacity of 50,000 wafers. The other investment, led by a Japanese power semiconductor major, will expand its existing plant in central Thailand, adding a 6-inch SiC wafer production line to meet the rapidly growing demand for high-performance power components from electric vehicles (EVs) and renewable energy.
BOI Secretary-General Narit Therdsteerakul said the two projects will directly create more than 4,000 jobs and attract upstream material and equipment suppliers to set up operations. He stressed: "Thailand is no longer just an 'assembly base', but is transforming into a high-value-added semiconductor manufacturing cluster, especially in packaging and testing and power semiconductors."
Policy Dividends Take Effect, Southeast Asia Investment Heats Up
In recent years, the Thai government has actively rolled out investment incentives, including corporate income tax exemptions of up to 13 years, import duty reductions on machinery, and special subsidy programs for the semiconductor industry. The landing of these two large investments is closely tied to such policies. In fact, according to BOI statistics, from 2025 to the first half of 2026, Thailand cumulatively approved over 80 semiconductor-related investment cases, with total value growing more than twofold from the same period, with packaging and testing and materials accounting for the largest share.
Industry insiders analyze that global tech giants are accelerating supply chain diversification, and Southeast Asia has become a core option in the 'China+1' strategy. Leveraging its existing automotive industry base, abundant human resources, and increasingly complete infrastructure, Thailand's appeal in automotive semiconductors and packaging and testing trails only Malaysia. This investment further establishes Thailand's role as a key node in the regional supply chain.
Strong Automotive Chip Demand Makes Power Semiconductors a Battleground
The booming development of electric vehicles and new energy infrastructure has made power semiconductors one of the most dynamic segments in the semiconductor market. Silicon carbide (SiC) components are regarded as a core technology for next-generation power electronics due to their excellent performance in high-temperature, high-frequency, and high-voltage environments. Currently, the SiC power component market is dominated by European, American, and Japanese manufacturers, but the expansion of Asian manufacturing bases is reshaping the competitive landscape.
Experts point out that Japanese power semiconductor makers chose Thailand for expansion not only to be close to automaker customers but also considering the proximity to huge end markets such as China and India. Meanwhile, the Thai government is promoting the 'EV 3.5' policy, aiming for EVs to account for 30% of national automobile production by 2030, which will provide solid demand support for automotive power semiconductors.
Advanced Packaging Race Intensifies, ASEAN Supply Chain Undergoes Qualitative Change
In advanced packaging, a market traditionally dominated by players such as TSMC and ASE, more new participants are arriving. The international packaging and testing major introduced to Thailand had previously only had a presence in Singapore and Malaysia in Southeast Asia; now it is extending its reach to Thailand, showing customers' increasingly urgent need for diversified packaging and testing capacity. This move may also drive upstream lead frame, substrate, and packaging material suppliers to set up plants in Thailand, forming a complete industry cluster.
Notably, this packaging and testing investment particularly emphasizes "green manufacturing," introducing advanced energy-saving packaging equipment and wastewater treatment systems to meet international customers' carbon footprint requirements. In the future, the competitiveness of Thailand's semiconductor industry will depend not only on cost but also on sustainable production capabilities.
Investment Insights: Four Directions for Positioning in Thailand's Semiconductor Supply Chain
- Packaging and testing outsourcing demand: As more fabless design companies rise in Southeast Asia, local packaging and testing plants see better order visibility. Watch Thai local companies with partnerships with international packaging and testing majors.
- SiC material supply: Demand for silicon carbide wafers and epitaxy will surge with new capacity coming online; relevant crystal growth, cutting, polishing equipment and material suppliers stand to benefit.
- Equipment and engineering services: New plant construction drives orders for semiconductor equipment, cleanroom engineering, automated logistics systems, etc.; engineering companies with proven track records will be winners.
- Automotive electronics modules: Back-end integration of power semiconductors and sensors creates opportunities for vehicle electronics module makers, especially those integrated with Thailand's local automaker ecosystem.
Conclusion
This major progress in Thailand's semiconductor investment reflects the deep logic of global supply chain restructuring: no longer simply pursuing the lowest cost, but the best balance of "resilience + growth." For investors, beyond the impact of a single event, the long-term investment theme in Thailand and Southeast Asian semiconductors should be explored from the perspective of regional industrial chain evolution.
