Thailand Announces New Incentives for Semiconductor Manufacturing

Aug 2021

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)

About Us

Orissa International helps companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 companies that includes distributors, resellers, system integrators and local manufacturers, that we have built through advising and guiding more than 5,000 companies with their market expansion into the ASEAN region over the last 25 years.

Orissa International is headquartered in Singapore, with additional offices in Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

Our Services