#Thailand #Semiconductor #Bangkok #Foxsemicon

Major Investment by Foxsemicon in Thailand's Semiconductor Sector

The Thailand Board of Investment (BOI) has recently approved a significant investment of 10.5 billion Baht (approximately US$306 million) from UNIQUE Integrated Technology Co., Ltd., a subsidiary of Foxsemicon Integrated Technology Inc. (part of the well-known Foxconn Technology Group). This investment marks a landmark moment for Thailand's semiconductor manufacturing sector.

The New Factory and Its Purpose

The investment will go towards constructing a factory dedicated to the production of high-precision machinery parts and equipment that are integral to the semiconductor industry. This strategic venture is poised to enhance Thailand's role in the vital semiconductor supply chain, especially as global demand continues to escalate.

During the announcement, Mr. Narit Therdsteerasukdi, Secretary General of the BOI, emphasized the importance of this project. He remarked, "This is an important investment by a company which is part of the Foxconn Technology Group and is a leading player in the global semiconductor wafer fab equipment supply chain. It comes at the perfect time as we engage in the drafting of Thailand's National Semiconductor Strategy."

Thailand's National Semiconductor Strategy

This investment aligns perfectly with Thailand's recently established National Semiconductor and Advanced Electronics Policy Committee. Under the leadership of Prime Minister Paetongtarn Shinawatra, the committee is focused on developing a comprehensive framework for a National Semiconductor Strategy aimed at attracting foreign direct investment (FDI) into Thailand's semiconductor sector. The government anticipates that these investments could boost the economy by at least 500 billion Baht by 2029.

Key Features of the Project

The new manufacturing facility will operate out of two key locations: Amata City Chonburi Industrial Estate and Amata City Rayong Industrial Estate, both situated in Thailand's Eastern Economic Corridor, a region designated for high-tech industrial growth. This area is becoming increasingly recognized as a hub for technological innovation and production in Southeast Asia.

The factory will focus on producing essential components for semiconductor production machinery, including shields, chambers, high-purity valves, and sub-assembly modules. Each of these components plays a critical role in the wafer fabrication process, which is fundamental to semiconductor manufacturing.

Moreover, the project promises to boost the local economy, as it is expected to employ over 1,400 qualified Thai workers and source a substantial portion of its raw materials locally, benefiting the domestic economy. The anticipated value of annual exports from this facility is expected to surpass 6 billion Baht, making it a significant contributor to Thailand's export figures.

Rising Trend in Investment Applications

The approval of this investment comes amidst a notable increase in investment applications in Thailand, showcasing a robust growth trend. For instance, during the first nine months of 2024, applications for investment promotion surged by 42%, reaching a total value of 722.5 billion Baht, marking the highest figures seen since 2015. The electrical appliances and electronics sectors have driven much of this growth, with numerous large-scale projects coming to fruition in these fields.

As Thailand continues to enhance its capabilities in manufacturing and technological development, investments like that of Foxsemicon will undoubtedly play a crucial role in establishing the country as a premier destination for semiconductor production and innovation in the region.

Conclusion

In summary, Foxsemicon's substantial investment reflects not only confidence in Thailand's growing semiconductor sector but also confirms the country’s strategic intent to position itself as a leader in advanced electronics manufacturing. As the factory prepares to commence operations, both local stakeholders and the international community will be closely watching the developments in Thailand's semiconductor landscape.