Thailand Board of Investment (BOI) has announced plans to promote investment in the manufacturing of semiconductors and related R&D activities, aiming to strengthen the country’s electronics supply chain. Crucially, the BOI has developed a new package with incentives that the country offers to players in this sector, targeting activities requiring more advanced technology and large-scale investment.
The recently approved enhanced investment promotion policy adds benefits for front-end capital and technology-intensive manufacturing, including wafer fabrication, integrated circuit (IC) substrate, IC and IC testing as well as large-scale mid-and back-end manufacturing. Investment in wafer manufacturing will be granted a corporate income tax exemption of 10 years, while advanced IC, IC substrate and printed circuit board projects with investment in machinery of at least USD 46 million will be eligible for a Corporate Income Tax (CIT) exemption of 8 years.
Thailand currently ranks 13th in the world as a base for electronic products and parts manufacturing. In the Printed Circuit Board (PCB) market alone, the country ranks as the world’s 7th largest exporter. Some leading electronics manufacturers present in Thailand include Minebea Misumi, NXP Semiconductors, Seagate Technology, Western Digital, Celestica, Microchip Technology, Toshiba Semiconductor, Benchmark Electronics, Sony Device Technology, and Delta Electronics.
(Sources: The Bangkok Post; Reuters)