Thai Industry Targets One Trillion Baht in Smart Electronics Value
Thailand's electronics industry is targeting one trillion baht in value under a new "Smart Electronics" strategy, focusing on leveraging existing strengths in power control and component assembly while building capacity in advanced chip des
The Federation of Thai Industries is advancing a 'Smart Electronics' strategy under the 'Reinvent Thailand' framework, aiming to convert new domestic investment and product demand into orders for Thai manufacturers. Chayanan Podhiworakun, chairman of the electrical and electronics industry group at the Federation of Thai Industries, said the strategy seeks to increase domestic component usage, reduce imports, and help businesses move from manufacturing to design, systems integration, and high-value technology work.
Electrical and electronics products currently represent about one-quarter of Thailand's total exports. In 2024, electronics exports reached approximately 1.86 trillion baht. Digital and electronics industry investment is expanding, particularly in data centers, with 36 investment promotion applications worth over 728 billion baht received in 2025.
The federation believes electronics development should advance on two fronts: 'brain' technologies such as processors and AI chips, where Thailand lacks capacity; and 'muscle' technologies for power control and conversion, where Thailand already has manufacturing foundations. Rather than immediately competing in advanced chip design, Thailand should leverage existing strengths in circuit board design, power control components, module assembly, testing, and systems integration before moving toward advanced chip packaging, optical technology, and AI hardware.
Over the next five years, demand from data centers, smart grid systems, and energy-efficient smart appliances could generate over one trillion baht in domestic procurement, production, and economic activity. If Thailand can capture 50–60% of the added value, it could create 100,000–130,000 billion baht annually in economic value, or roughly 0.5–0.7% of current GDP.
Panidhan Pavarolwattaya, secretary-general of the Federation of Thai Industries, emphasized that Thailand's challenge is not merely attracting investment but converting new demand into orders for Thai producers, increasing domestic component sourcing, reducing import leakage, and retaining value domestically.
Four priority markets have been identified, including data centers and AI supply chains. Over five years, Thailand could accommodate an additional 5,000 megawatts of data center capacity, representing potential new investment of about 1.8 trillion baht. Thailand targets capturing 40% of procurement and domestic production benefits, around 720 billion baht, spanning cables, transformers, electrical switches and controls, backup power systems, cooling systems, server cabinets, circuit boards, and assembly and systems integration work.
