BACK Analyzing Thailand’s PCB Industry Following the Recognition of the Electric Vehicle Industry in Thailand
The electronic printed circuit board (PCB) manufacturing industry in Thailand is considered a crucial export sector contributing significantly to the nation’s economy. This is evident in the large number of OEM PCB manufacturing plants in industrial estates, producing products such as household electrical appliances, computers, office equipment, communication devices, CCTV cameras, and many more. The industry has been developing continuously for over 50 years, with special tax incentives and other benefits provided through the Board of Investment (BOI).
Number of Manufacturers and Export Value
The global printed circuit board (PCB) market is projected to grow at an annual rate of approximately 3.3% from 2021 to 2026. In 2020, the market was valued at around $70 billion and is expected to increase to $86 billion within five years. This reflects the continued and increasing growth of the PCB market in recent years, largely due to the high demand for consumer electronic devices and rapidly changing technology. This is evident from the frequent release of new electronics, with product life cycles typically being short.
Competition and Issues
After the flooding of several industrial estates in 2011, some of Thailand's electronics production lines were disrupted, prompting parent OEM companies to diversify risk by investing in other ASEAN countries, such as the Philippines, Indonesia, and Vietnam. This caused a significant reduction in Thailand's export volumes. Additionally, the transition in technology and the rise of smartphones—largely manufactured in China—also contributed to the decline. The COVID-19 pandemic further exacerbated the situation, with shortages of raw materials caused by border closures in many countries. Consequently, many companies with production bases in Thailand moved their investments to countries with cheaper labor costs. Another issue faced by medium and small manufacturers, who are typically subcontractors, is their limited technology capabilities and lack of investment in research and development, making their adaptation slower compared to large companies in the same industrial estates. For example, the shift from producing SATA hard drives to SSDs, and then to NVMe M.2 drives within a few years, has highlighted the gap in adaptability.
Future Trends and Outlook
The future of the PCB industry remains promising, especially with the electric vehicle and IoT industries expected to experience exponential growth. As demand for PCB products increases, manufacturers must focus on quality production to remain competitive with neighboring countries. This may require reliance on robotic technology in manufacturing and other research in line with modern production technologies. For instance, major foreign companies such as Foxconn, a leading Taiwanese chip manufacturer, have established electric vehicle production plants in Thailand through joint ventures with PTT. Additionally, BYD has set up an electric vehicle production facility, and major Chinese electric vehicle companies are planning to use Thailand as a production base for vehicles to be sold and exported within the ASEAN region. TESLA, which initially planned to invest only in electric vehicle showrooms, has now increased its registered capital to 253 million baht, indicating it may expand beyond just selling vehicles.
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