The global semiconductor industry is facing imbalances in supply and demand due to increased demand and disruptions in the supply chain, leading to a potential shift in production facilities to Thailand. Countries are prioritizing domestic production and companies need to embrace change through collaborations, joint ventures, and skills development.
The semiconductor industry is facing challenges due to supply and demand imbalances, driven by increased demand and disruptions in the manufacturing supply chain. This imbalance has been exacerbated by various events such as the China-US trade war, the COVID-19 pandemic, and the Russia-Ukraine dispute.
Despite the resumption of increased production capacity and output, the market dynamics and the balance between supply and demand still require close monitoring as demand is poised for another surge.
Many countries are prioritizing the securing and strengthening of their domestic semiconductor industry. The US and the EU have enacted the CHIPS Act to boost domestic semiconductor production, while Asian manufacturers are also firm in maintaining their semiconductor production positioning.
SCB EIC anticipates that Thailand’s chip industry has the potential for further advancement as a new global production supply chain takes shape, with several production facilities expected to relocate to Thailand.
However, Thai companies aspiring to be part of the new semiconductor production supply chain must embrace change and implement strategies such as establishing collaborations, seeking joint venture opportunities, strengthening domestic production capabilities, and promoting workforce skills development to align with the future demands in the semiconductor industry.
Source: Thailand Business News