In a recent statement, US Commerce Secretary Gina Raimondo emphasized Thailand's potential to benefit significantly from the United States' strategic move to diversify semiconductor production. Raimondo highlighted the readiness of American firms to amplify investments in the Southeast Asian nation, foreseeing promising prospects ahead.
The electrical and electronics industry stands as a pivotal sector in Thailand's foreign investment landscape, drawing considerable attention from Prime Minister Srettha Thavisin's administration as a catalyst for economic revitalization.
"Production of semiconductors is dangerously concentrated in one or two countries in the world," remarked Raimondo during an event in Bangkok, underscoring the imperative to expand production diversification efforts, particularly within countries affiliated with the Indo-Pacific Economic Framework (IPEF), which includes Thailand.
The IPEF initiative, spearheaded by the United States, aims to offer viable alternatives to countries in the region, steering away from overreliance on any single trading partner, notably China.
The groundbreaking "Chips and Science" law, passed by the US in 2022, allocated a substantial $52.7 billion towards bolstering domestic semiconductor production, research, and workforce development. Thailand, home to a semiconductor industry largely dominated by US, Japanese, Korean, and Dutch firms, has emerged as a competitive player, particularly in the back-end process, aligning it with counterparts like Vietnam and India, as indicated by a 2023 Siam Commercial Bank report.
In response to evolving global manufacturing dynamics, influenced by geopolitical tensions, Thailand has witnessed a surge in semiconductor production facility relocations, with the nation's Board of Investment incentivizing investments through tax breaks and duty exemptions.
"Amidst the ongoing efforts of US multinationals to diversify their supply chains, Thailand emerges as a compelling choice," affirmed Raimondo, underscoring the country's attractiveness for foreign investment.
Raimondo's recent visit to the Philippines saw the announcement of substantial US investments exceeding $1 billion, spanning critical sectors such as solar energy, electric vehicles, and digitization, reinforcing the enduring partnership between the two nations.
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