Thailand's AI Infrastructure Shift Opens Manufacturing Opportunities
Thailand is capitalizing on a shift in global AI investment toward infrastructure and manufacturing, with analysts identifying power systems, cooling solutions, and advanced semiconductors as key growth opportunities attracting foreign inve
Investment in artificial intelligence is shifting from chip production to supporting infrastructure, creating positive momentum for Thailand's economy and attracting foreign direct investment. Supaphong Iamkongaek, an analyst at Kiatnakin Phatra Securities, says global AI investment will not remain confined to software or chips but is expanding into areas where Thailand has cost advantages, such as infrastructure and downstream manufacturing. This represents an open opportunity for the Thai economy to attract new waves of foreign direct investment into advanced production chains, which would not only increase profits for listed companies but also elevate the competitive capabilities of Thai industry on the global stage.
As AI systems grow larger, power consumption per rack in data centers has increased from tens of kilowatts to around 600kW and may reach 1MW in the future. The critical bottleneck is shifting toward infrastructure that supports processing, including power systems, cooling systems, and data transmission. Thai industrial development analysts identify two key technological changes driving the next phase: 800VDC technology, which addresses energy challenges by increasing voltage, reducing copper usage, and lowering heat; and optical connectivity systems to overcome the speed and distance limitations of traditional copper cabling.
With global AI investment accelerating, new waves of foreign direct investment are expected to flow into Thailand, particularly in semiconductors, printed circuit boards (PCB), and advanced electronics. This trend is reflected in rising demand for industrial land, with major Thai industrial park developers WHA and AMATA estimated to sell approximately 2,500 and 2,000 rai of land per year, respectively. Although upstream technologies like chip design and manufacturing remain concentrated abroad, Thailand is playing an increasingly important role in the semiconductor supply chain for AI, particularly in downstream manufacturing and advanced processing.
Thailand-listed companies are well-positioned to benefit. Delta Electronics Thailand has capacity to support data center power systems such as power supply units and liquid cooling solutions. Hana Microelectronics benefits from growing demand for analog ICs and power semiconductors supporting the transition to 800VDC systems. KCE Electronics is prepared for high-end printed circuit board demand requiring more layers for complex and energy-efficient AI server designs. Stars Microelectronics Thailand directly benefits from the infrastructure transformation.
