Former Thai Finance Advisor Calls for Faster Semiconductor Innovation

Former Advisor to MOF Boards Urges Thailand to Hasten Semiconductor Innovation

Image Credits: ITIF

Mr. Woraphak Thanyawong, the previous Chairman of the Advisory Board for the Minister of Finance, wishes the new government to streamline arrangements and form a committee to develop the nation’s semiconductor business; however, the capable activities, particularly the Board of Investment (BOI), have previously introduced some of those events, which have not been shown to the cabinet so far.

The worldwide semiconductor market is increasing significantly and is predicted to reach up to the value of one trillion USD by 2030, mainly because of the development of artificial intelligence (AI), electrification, and real-time construction in the computer and electric vehicle industries. While these industries act as key stimuli, there is also geopolitical tension between China and the U.S. that encouraged several corporations to utilize the “China + 1” plan, looking for new manufacturing centers in the Southeast Asia region.

Presently, Thailand plays robust roles in the supply chain distribution midstream and downstream, like packing, assembling, and testing the chip, as well as engineering electronic mechanisms. Though the parts in the upstream are still missing, like integrated circuits (IC) and wafer manufacture. However, Thailand has numerous advantages that can produce opportunities for the market to develop rapidly, like its neutral stance in the geopolitical tension, charge-competitive and trained workforce.

Mr. Woraphak guided the new government to use a combined development path policy, increasing midstream and downstream compensations, such as the growth of top-tier packing technology, before gradually concentrating on the upstream in the long term, like connecting IC and engineering wafers. This plan will create ecosystem sustainability and lessen the danger from over-investment. He added that Thailand must utilize comprehensive supportive factors, comprising investment inducement, human resource growth through partnership with foremost universities, R&D reassurance, as well as emerging basic infrastructure and guidelines for funding investment.