Private sector urges government to launch national semiconductor strategy amid global trade challenges

The Thai semiconductor industry calls for a national strategy to boost exports and tackle global trade uncertainties, urging government support for long-term plans.

The Thai Semiconductor Industry Trade Association (THSIA) has emphasised that while the semiconductor industry is established in nearly every country, Thailand is a latecomer and lacks a comprehensive national semiconductor strategy.

During a recent seminar hosted by the Trade Policy and Strategy Office, THSIA vice president Naiyavudhi Wongkomet pointed out that neighbouring countries like Malaysia have already developed such plans, highlighting that Thailand is lagging behind.

Naiyavudhi expressed concern over the uncertainty caused by the US’s transshipment issues and the challenges of shifting production bases. He noted that the global market’s ability to increase export share to other regions remains uncertain, and a more specific approach is needed to solve these challenges.

"I want to urge the government to create a long-term master plan and focus on local procurement, including both local content and know-how. Anyone involved should receive benefits, and this depends on policy," Naiyavudhi added.

In addition to the Board of Investment (BOI) leading the master plan, he called for the Ministry of Commerce and the Ministry of Foreign Affairs to become involved, highlighting that the semiconductor industry is complex and requires collaboration across several government sectors.

Kittisak Ngern-ngok-ngam, Senior Director of Business Development at Delta Electronics (Thailand) Plc, mentioned that Delta invests around 8.3% of its revenue into research and development (R&D) to develop products tailored to each country’s factory needs.

Regarding Trump’s tariff policy, Kittisak said that they are focusing on long-term strategies, emphasising the importance of “Made in Thailand” products. He stressed that the government must target more specific groups beyond just business matching, adding that Delta is keen to use Thai suppliers who manufacture locally to prevent product misappropriation.Swaek Prakitritanon, Vice President and Secretary-General of the Thai Printed Circuit Board (PCB) Association, pointed out that the semiconductor industry is a long-term game. He noted that the real risk isn’t just taxes but the ongoing trade war. He cited Samsung’s negotiations with Washington over exports to Vietnam as an example of how the situation is impacting brand owners.

He further emphasised that the US wants products to originate from Thailand, and the government needs to focus not only on products but also on shareholders. He urged the government to take these issues seriously, as non-tariff barriers are difficult to address but also present significant opportunities.

"Retaliatory tariffs are reducing consumer purchases in the US, ultimately affecting Americans themselves. The relocation of production is not easy. This is a long game, involving the entire supply chain. We need to prepare for the long term, with a focus on skilled labour, green energy, and the fact that we export a significant amount of electronics," Swaek concluded.

(2025/08/14-00:00)