Thailand is once again gaining attention on the global technology industry map after a recent International Monetary Fund (IMF) report placed the country among the top four major exporters of AI-related hardware worldwide, alongside Taiwan, Malaysia, and South Korea. This follows earlier assessments identifying Thailand as a country with growing potential to play a significant role in global supply chains, according to Verisk Maplecroft.
Ratchada Thanadirek, spokesperson for the Prime Minister's Office, revealed that Thailand is making concrete progress toward becoming a global production hub for future technologies. The latest IMF report projects that Thailand's economic growth (GDP) will exceed previous forecasts, supported by government economic stimulus measures, emergency fiscal policies, and strong technology sector exports and investments.
The IMF stated that exports of AI-related technology products from many Asian countries have become a key driver of their economies amid rapidly expanding global AI investments. Thailand is among those benefiting from this supply chain.
Although some may be surprised that Thailand ranks alongside Taiwan and South Korea, examining the industrial structure reveals Thailand's significant role as a Manufacturing Hub for the electronics and semiconductor industries for several decades.
Currently, Thailand serves as a production base for many global companies, including chip assembly and testing, printed circuit board (PCB) manufacturing, hard disk drives, SSDs, sensors, power electronics, and components used in servers and data centers—all critical elements of AI systems.
Over the past two to three years, AI investments have caused a surge in hardware demand, including GPUs, servers, storage systems, memory chips, and networking equipment, resulting in increased exports for countries like Thailand within the supply chain.
Another key factor is the 'China+1 Strategy' production diversification trend, prompting major chip manufacturers to expand capacity in ASEAN. Thailand has attracted attention due to its strong infrastructure, skilled workforce, and existing electronics industry.
The government has designated the AI, semiconductor, and advanced electronics industries as national strategic sectors, advancing development of digital infrastructure, power systems, workforce training, research, and establishing the National Semiconductor Policy Committee to position Thailand as a key global supply chain hub.
Over the past two years, Thailand has attracted investments from leading global chip manufacturers in semiconductors, PCBs, power electronics, and data centers, reflecting its emergence as a major AI investment destination in the region.
However, analysts view being a major hardware exporter as only a 'starting point' in the AI era, noting that countries generating the highest value are those owning technology, chip design, AI software, and intellectual property, not merely those with the most factories.
For example, Taiwan has TSMC, the world's most advanced chip manufacturer; South Korea has Samsung Electronics and SK Hynix dominating the memory market; the U.S. hosts global chip design and AI platform companies like Nvidia, AMD, and Broadcom. Meanwhile, Thailand is still in the early stages of building its own semiconductor and AI design ecosystem.
If Thailand aims to advance from a manufacturing base to a regional technology hub, several mechanisms should be expedited:
The IMF's recognition of Thailand as one of the world's major AI hardware exporters signals the country's growing importance in the global AI supply chain and its potential to benefit increasingly from future industry investments.
However, the forthcoming challenge is shifting from being a 'manufacturer for others' to creating proprietary technology, value addition, and innovation, as long-term advantages in the AI era come from comprehensive development of technology, talent, and innovation ecosystems.
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