BACK Thailand: The New Hub! Global PCB Giants Invest， Making it a World Export Base
Source of Image: https://pixabay.com/th/photos/pcb-แผงวงจร-เทคโนโลย-พมพ-2655766/
PCB: The Heart of Electronic Innovation
In a rapidly evolving technological world, Printed Circuit Boards (PCBs) are at the core of electronic circuits driving numerous innovations. Devices we use daily, such as smartphones, computers, electric vehicles, and medical equipment, rely heavily on PCBs for connecting and controlling electrical circuits. PCBs accommodate a multitude of electronic components within a confined space, enabling compact and efficient device designs.
As Thailand aims to become a leading manufacturing and export hub for PCBs, advancements in this technology will fuel the digital economy and foster continuous innovation. Competing with leading countries in the electronics industry will require expertise in high-quality PCB production and design to maintain a strong market position.
Structure and Key Components of PCBs
A typical PCB consists of a base layer made from strong materials like fiberglass or polymer plastics, with copper circuit patterns that interconnect various electronic components such as resistors, capacitors, and transistors. This sophisticated design enables precise control over devices, fulfilling various functionalities, making PCBs a core component in modern electronics.
Thailand needs to enhance its PCB production capabilities to meet high international standards. This includes adopting eco-friendly materials to prevent pollution and implementing rigorous quality checks to comply with global standards.
Recent data from the Board of Investment (BOI) shows that PCB investments from early 2024 to August surpassed 50 billion THB from over 30 projects, including PCB and related supply chains. When combined with investment figures from 2023, the total exceeded 150 billion THB, positioning Thailand as a key manufacturing base in Southeast Asia. Strong infrastructure, skilled labor, and government support are pivotal factors attracting foreign investors, particularly in advanced industries like electronics, electric vehicles, and cutting-edge technologies.
China's "China +1" strategy, aimed at diversifying investment risk, has led Chinese manufacturers to seek secondary production bases outside China, with Thailand being the top target in the region. Strong government support has solidified Thailand’s status as Southeast Asia's leading PCB production hub.
From 2023 to the second quarter of 2024, the value of investment promotion applications in the PCB industry surpassed 140 billion THB, reflecting global investor confidence, particularly from Mainland China, Taiwan, Japan, and Hong Kong.
2. Inclusion of Key Raw Material Production: Investments in critical materials like Copper Clad Laminate (CCL), Flexible Copper Clad Laminate (FCCL), and Prepreg with a minimum of 1.5 billion THB receive an eight-year corporate income tax exemption. Investments under this amount receive a five-year exemption.
3. Production of Additional Materials: This covers materials essential to PCB manufacturing, such as dry film and backup boards, which are eligible for various other incentives but not tax exemptions.
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Challenges in PCB Manufacturing
While PCBs are essential for technological advancement, their production comes with challenges. Complex circuit designs can lead to assembly errors, where even minor mistakes can render the electronic circuits non-functional. High-quality PCB manufacturing demands precision, from material selection and circuit coating to component assembly.
Thailand needs to enhance its PCB production capabilities to meet high international standards. This includes adopting eco-friendly materials to prevent pollution and implementing rigorous quality checks to comply with global standards.
PCB's Role in Thailand's Electronics Industry Success
The success of Thailand’s electronics industry, whether in industrial estates or specialized zones, hinges on the development and production of high-quality PCBs. As a fundamental component in numerous devices, the growth of electronic technology in Thailand continues to expand, bolstering its competitiveness in the global market.
Recent data from the Board of Investment (BOI) shows that PCB investments from early 2024 to August surpassed 50 billion THB from over 30 projects, including PCB and related supply chains. When combined with investment figures from 2023, the total exceeded 150 billion THB, positioning Thailand as a key manufacturing base in Southeast Asia. Strong infrastructure, skilled labor, and government support are pivotal factors attracting foreign investors, particularly in advanced industries like electronics, electric vehicles, and cutting-edge technologies.
Thailand: The New PCB Investment Hub in the Region
Thailand is emerging as a significant manufacturing base in the PCB industry, attracting major manufacturers in Mainland China and Taiwan. With robust infrastructure, including stable electricity, sufficient water supply, and skilled labor, BOI actively promotes investment from China through roadshows and direct engagement with PCB manufacturers.
China's "China +1" strategy, aimed at diversifying investment risk, has led Chinese manufacturers to seek secondary production bases outside China, with Thailand being the top target in the region. Strong government support has solidified Thailand’s status as Southeast Asia's leading PCB production hub.
From 2023 to the second quarter of 2024, the value of investment promotion applications in the PCB industry surpassed 140 billion THB, reflecting global investor confidence, particularly from Mainland China, Taiwan, Japan, and Hong Kong.
PCB Industry: Transforming Thailand's Landscape
From 2020 to 2023, Thailand's investment in the PCB industry grew steadily, with investment values in 2023 increasing more than sixfold from the previous year. A significant 72% of this investment came from Chinese and Taiwanese PCB manufacturers. Thailand has become a prime destination thanks to its favorable environment, skilled workforce, cost-effective business operations, and strong governmental support. Robust infrastructure, including water management and wastewater systems, further supports PCB production.
Latest Updates: BOI Incentives and Benefits for the PCB Industry
The BOI has introduced comprehensive incentives to promote investment in the PCB industry, offering additional benefits to manufacturers and service providers setting up factories in industrial estates. Key details include:
1. Expansion of Supported Activities: This includes lamination, drilling, plating, and routing processes. Investments of over 1 billion THB qualify for a three-year corporate income tax exemption. Investments below this threshold receive other non-tax benefits.
2. Inclusion of Key Raw Material Production: Investments in critical materials like Copper Clad Laminate (CCL), Flexible Copper Clad Laminate (FCCL), and Prepreg with a minimum of 1.5 billion THB receive an eight-year corporate income tax exemption. Investments under this amount receive a five-year exemption.
3. Production of Additional Materials: This covers materials essential to PCB manufacturing, such as dry film and backup boards, which are eligible for various other incentives but not tax exemptions.
Thailand’s investment promotion measures for the PCB industry build investor confidence locally and internationally. The 304 Industrial Park stands out as a prime location for long-term investments, offering top-tier infrastructure with unlimited water supply and a zero-waste discharge wastewater treatment system. The park also utilizes renewable energy, including the country’s largest floating solar farm and biomass energy, with a total capacity of 555 MW. This makes the 304 Industrial Park an ideal site for high-tech investments, focusing on sustainability and environmental friendliness.
Sources:
- https://www.prachachat.net/economy/news-1640006
- https://www.bangkokbiznews.com/business/economic/1119856#google_vignette
- https://www.thansettakij.com/business/economy/605268#google_vignette
- https://ic.or.th/th/about-us/boi-news/1431-ไทยเนื้อหอม-เลขา-boi-ชี้วงลงทุน-pcb-ทะลุ-2-แสนล้าน-ยืนหนึ่งอาเซียน-จ่อพัฒนาคน-กระจายผลิตทั่วภูมิภาค.html
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