“The chips produced in Thailand are at an intermediate level. In the wafer cutting and chip assembly industries that depend on importing raw materials and upstream technology from abroad. by Thai semiconductor products every year Exports of more than 10 billion dollars (over 330 billion baht) are divided into 2 groups: printed circuit boards (ICs) and semiconductors and transistors, with 80% exported printed circuit boards. Its main export markets include Hong Kong, the United States and Singapore.”
- United Yahoom invests in Thailand
Latest at the end of last week. Ms. Gina Remondo, US Secretary of CommerceHe led the US Presidential Export Council (PEC), a group of senior executives from the private sector and leading US organizations appointed to serve as advisers to the president. Travel to Thailand As well as meeting and discussing with Mr Settha Thavisin, Prime Minister and Minister of Finance of Thailand, to expand trade. investment between them He also met with members of the American Chamber of Commerce in Thailand (AMCHAM) to promote economic relations between them.
important part Mrs Gina announced her support for US private companies to expand investment in semiconductors in Thailand. From being the industry with the most demand or demand in the world according to the growth of Digital Economy and World AI data centers and the diversification of supply chain risks in world semiconductor production to the member countries of the Indo-Pacific Economic Cooperation Framework ( IPEF), which currently has 14 member countries (including Thailand).
- State 3 factors influencing investment in Thailand
Associate Professor Dr Ath commented on the possibility that the United States will come to expand investment in semiconductors in Thailand that depends on many factors including: 1. Development of personnel and skilled workers How much does Thailand have? Support investment in the chip industry from the United States 2.Thailand has higher production costs, including labor, oil and electricity, than countries in ASEAN. Will its attractiveness compete with that of other IPEF member countries 3. and China’s semiconductor industry investment plan. to come and invest in Thailand If China plans to invest in the electric vehicle (EV) industry by establishing a chip company to supply the electric vehicle industry in Thailand, the United States may not invest.
“Looking at the main reason the US wants to come to Thailand It’s more about international politics. And it’s just a perfume. The main reason for the development of the chip industry is not because the United States wants to reduce China’s role in the ASEAN region. Because currently US companies It has already invested in many ASEAN countries. There are at least 8 companies in Singapore. and there are investments in Malaysia and Vietnam.”
However, if the US actually invests in setting up a semiconductor factory in Thailand. Thailand will benefit in many ways, including: It will help Thailand to raise the level of development of Thai industries in the future faster. Help develop Thai labor and educational institutions into the industries of the future. Push Thailand into the digital economy faster and the value of exports will increase.”
- BOI fully supports upstream industries
side Narit Theodsatheerasak Secretary General of the Board of Investment (BOI) Discuss the pull of target industries Especially upstream industries such as semiconductors. come to invest in Thailand that the BOI is ready to use various investment promotion tools available to attract US investors Come to invest in Thailand And if you want to use the fund’s channels to increase your competitiveness. which BOI has special benefits You can use this channel. Willing to consider all industries.
“Several important tools, the BOI has prepared quite a lot. The Prime Minister’s Policy Wants to attract investment from upstream industries from abroad to invest in Thailand. Because it will help raise the level of the industry in the country. and increasing Thailand’s competitiveness.”
In order for the fund to increase the competitiveness of the country It is considered an important tool of the BOI. which is in addition to the main special benefits under the BOI law It is a fund under the Act on Improving National Competitiveness for Targeted Industries 2017.
Projects applying for promotion must have the following characteristics: 1. Pioneer: new production or service businesses or the use of new technology or the use of knowledge in advanced production 2. Innovation-driven transformation: the development of important technologies for sustainability in the country. and push the country towards an economy driven by innovation 3. Public Interest brings great benefits on a wide scale to the economy and society. Creating knowledge, technology and innovation in the country. Personnel development in different sectors and technology transfer.
In terms of rights and benefits under this law, they will be exempt from maximum corporate income tax. Exemption from import duties on machinery and raw materials Receive VISA and Work Permit benefits as well as financial support from the fund. The BOI will consider each project individually that corresponds to the target industries of the country it wants to attract to invest in Thailand.
- Appoint “Chayothit” as a team leader to attract investment
A Government House source said that the issue of attracting semiconductor investment from the United States The government has set aside ML Chayothit Kridakorn, Adviser to the Prime Minister To carry out duties as Thai trade representative He became team leader after ML Chayothit was the person who traveled down to discuss details with the private sector in many industry groups. together with various agencies, namely the Ministry of Commerce Ministry of Foreign Affairs And from this, a team may be established to discuss closely in order to bring in further investment.
“Discussion between the Prime Minister and the Secretary of Commerce of the United States This time I did not go into details. Because in the past the government appointed ML Chayothit to discuss the details of collaboration with the private sector. And from now on it will continue to move forward. Attract investment in many targeted industries. Because Thailand is currently pushing for mega projects such as land bridges, including the promotion of green EV industries. data center and semiconductors, in which the United States has seen Thailand’s potential,” the source said.
- Determined to give birth to a Thai chip strategy
Mr Wiboon’s side Raksas Charoenphon, Deputy Secretary General of the Federation of Thai Industries (FTI), said of his representation of FTI in consultation with the US Secretary of Commerce and the US Presidential Export Council. (PEC), with members of the American Chamber of Commerce in Thailand (AMCHAM) doing business in high-tech electronics joining the latest 6 companies. The point of this discussion is to get to know each other better. One issue that Ms. Gina was about what part of Thailand’s value chain is in the global semiconductor industry. And what are their strengths and weaknesses? (SWOT) The US challenge is to balance the supply chain in this area.
“Regarding the possibility of expanding semiconductor investment in Thailand The US private sector has the power to make decisions. It is important that Thailand must have National Semiconductor Strategy that the public and private sectors must push together This is to show the strategy for support and development. Including clearly setting Thailand’s goals in the world semiconductor supply chain. It is something that US investors And foreigners want to see this in order to make investment decisions in Thailand about which stage of the supply chain to invest in. It is estimated that Thailand may have to compete with Indo-Pacific ASEAN member countries to attract US investment, such as Vietnam, Malaysia and Singapore, where semiconductor investment per project is expected to be in the tens of billions. of baht or more,” said Mr Wiboon
Page 1 Thansettakij Newspaper, Issue 3976, March 21-23, 2024
#Competing #global #market #trillion #attracting #Americans #produce #chips #Thailand #government #appoints #Chayotit #negotiating #team
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