Thailand Aims for 'Made in Thailand' Chips by 2050; Hsieh Chin-ho: Taiwan's Supply Chain Spillover Effect is Happening

Thailand is setting ambitious goals to become a regional hub for semiconductors and artificial intelligence by 2050, with Prime Minister Srettha Thavisin announcing the establishment of a dedicated unit to drive these industries. The initiative aims to achieve "Made in Thailand" semiconductor production within the next three decades.

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In the development of the AI supply chain, the United States is the brain, Taiwan is the heart, and perhaps Thailand and Malaysia have the opportunity to become the hands and feet. The spillover effect of Taiwan's value will also gradually emerge!

Financial commentator Hsieh Chin-ho views this development as a significant opportunity for Southeast Asian nations. He posits that in the AI supply chain, the United States serves as the "brain," Taiwan as the "heart," and countries like Thailand and Malaysia have the potential to become the "hands and feet." This suggests a collaborative model where Taiwan's established semiconductor expertise could foster growth in neighboring economies.

Hsieh highlighted Thailand's steady economic progress, noting its stock market's robust performance, partly attributed to the significant influence of Delta Electronics (TED). Delta's operations in Thailand have not only boosted its own stock but also positively impacted other Taiwanese companies with manufacturing bases in the country, such as Taijinbao and JPP-Ky.

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Thailand's textile and automotive industries have been severely hit by China's internal competition. This time, Indonesia's situation is also dire, partly due to China's internal competition and the departure of a trusted female finance minister.

The push into semiconductors and AI is seen as a strategic pivot for Thailand, whose traditional manufacturing sectors like textiles and automotive have faced intense competition. Hsieh also pointed to Malaysia's semiconductor cluster in Penang, where companies like Broadcom and Intel have substantial operations, and Taiwanese firms like ASE Technology Holding and Marvell Technology are expanding. He believes that closer integration with Taiwan's supply chain could unlock immense potential for Malaysia, especially in the context of global efforts to diversify supply chains away from single sources. Hsieh emphasized that national leaders' choices will be crucial in determining the future role of these countries in the global tech landscape.

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The AI revolution brought by AI also brings opportunities to various countries in Southeast Asia!