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Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
POV: How Thailand is Becoming a Critical Hub in Global PCB Manufacturing
In the face of escalating geopolitical tensions, the global electronics industry is reevaluating its reliance on China for Printed Circuit Board (PCB) manufacturing. This reevaluation has spurred a strategic diversification, the China+1 strategy, with Thailand emerging as a crucial investment destination for PCB production.
Historical Context and Industry Evolution
Since the 1980s, Thailand has cultivated a robust PCB industry, attracting significant foreign and local investments from pioneers like Elec & Eltek, Chin Poon and KCE. This foundational period set the stage for subsequent expansions by companies such as Apex and Kyoden, which have contributed to a comprehensive and growing PCB manufacturing base.
Strategic Advantages Driving Investment
Thailand's appeal as a PCB manufacturing hub is supported by:
- Automotive and Electronics Sectors: As one of Asia’s leading automotive producers, Thailand offers a vibrant industrial ecosystem, ideal for supporting advanced PCB manufacturing for automotive and electronics applications.
- Government Incentives: The Thai Government provides attractive incentives through the Board of Investment (BOI), targeting PCB manufacturing with tax rebates, subsidies, and low interest rates. Importantly, these incentives also extend to the upstream supply chain, encompassing copper-clad laminates and raw materials suppliers, thereby strengthening the entire PCB production ecosystem in Thailand.
- Geographical and Cost Advantages: Centrally located in Southeast Asia, Thailand provides logistical benefits and cost advantages over other regional options, making it a competitive location for PCB production.
Growth and Expansion in the PCB Industry
Thailand's PCB industry is not only experiencing an increase in the number of manufacturers but also a significant expansion in the upstream supply chain. This includes new investments focusing on mid-to high-volume PCBs produced in highly automated facilities utilizing a diverse range of technologies. Over 10 of Jabil's PCB preferred suppliers, either have existing factories or are in the process of setting up plants in Thailand, highlighting the country’s growing importance.
Challenges and Cost Considerations
Despite its strategic advantages, Thailand faces challenges such as a shortage of skilled PCB manufacturing personnel. Moreover, production costs in Thailand are currently 15% to 25% higher than in China, with expectations that achieving cost parity will take several years.
Future Outlook
Thailand’s strategic emergence as a key player in the global PCB industry reflects a broader shift towards greater supply chain resilience and agility. By leveraging its industrial base, favorable policies, and strategic location, Thailand is poised to play a vital role in global electronics manufacturing. However, realizing this potential will require continued investment in technology, human capital, and strategic management of cost competitiveness and workforce challenges.
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