1. Strategic Position in Global Electronics & Supply Chains
Thailand has rapidly developed into a major electronics production and export hub, integrating multi-stage manufacturing from PCB assembly to storage device production — a key advantage for European firms looking to diversify supply chains outside China.
Key Data & Benefits:
- Thailand’s electronics exports exceeded USD 75 billion, supported by competitive PCB, HDD, and component production.
- Hard disk drives produced in Thailand supply major global markets and benefit from rising data center demand — a strategic area for European cloud and telecommunications supply needs.
- A complete manufacturing ecosystem attracts investment and sustains supply chain resiliency — appealing to EU producers requiring stable sourcing and assembly.
➡️ For European companies, Thailand acts as a reliable tier in Asian electronics supply chains supporting EU tech value-chain diversification.
2. Strong Investment Momentum & Government Support
Thailand’s Board of Investment (BOI) has launched programs that make it more attractive for foreign electronics investors, including European firms:
Recent Initiatives (Sep–Dec 2025):
- A $79 billion semiconductor & electronics investment strategy aims to grow high-tech manufacturing through 2050, signaling long-term industry commitment.
- BOI shifted to offer direct financial support and workforce incentives (≈ $153 million) for electronics and advanced industries, not just tax breaks.
- Thailand remains open and active in attracting advanced electronics proposals worldwide — suggesting continued favorable investment climate.
Benefits for Europe:
- Lower input costs via incentives and reduced entry barriers.
- Stronger local workforce capabilities boosted by government-funded training.
- Predictable policy direction for electronics FDI.
📍 3. Export Orientation with Pro-Trade Policy
Thailand’s electronics industry is overwhelmingly export-oriented (~90–95% of output), and the EU is already a significant market — offering European companies easier integration into global trade flows.
Specific Points:
- Europe accounts for ~14.8% of Thailand’s electronics exports — second only to the US and ahead of many Asian markets.
- Continued government emphasis on export growth (target 4% in 2025) underscores commitment to open trade.
Why This Matters to Europe:
- European electronics brands can tap into Thailand’s export platforms to reach ASEAN, China, and beyond.
- It supports EU strategy of diversifying supplier bases (reducing regional concentration risk).
🚀 4. Rising Role as an ASEAN Regional Hub
Thailand’s central location and infrastructure are attractive for European manufacturers expanding in Southeast Asia.
Competitive Advantages:
✔ Proximity to key electronics producers (Vietnam, Malaysia, Taiwan markets)
✔ Modern industrial parks and connected logistics
✔ Growing skilled labor force and localized supply chains
✔ Stable political positioning compared with some regional counterparts
Impact for EU Firms:
- Allows European OEMs and Tier-1 suppliers to establish regional hubs with efficient access to both ASEAN and global markets.
- Lowers lead times and logistic costs compared to distant facilities.
📌 5. Skilled Workforce Development & Talent Pipeline
Thailand is actively investing in workforce training and upgrading industry standards — a critical factor for high-value electronics manufacturing.
Recent Trends:
- BOI training support covers ~100,000 workers and students in advanced sectors including electronics.
- Growing emphasis on R&D and advanced manufacturing upskilling attracts talent beyond traditional assembly lines.
Benefit to EU Investors:
- Availability of talent lowers cost of operations and supports technology transfer.
- Enables European companies to deploy higher-value production segments locally.
Reference :
https://www.aseanbriefing.com/
https://www.krungsri.com/
https://icc-tca.org.tw/
https://www.reuters.com/
https://thaitimes.com/