《DJ Online》PCB industry moves south, Thailand will see a wave of new factories opening this year

2025/02/06

MoneyDJ Financial Network
February 4, 2025
Author MoneyDJ News Reporter Wan Huiwen

With geopolitical changes and the reshaping of supply chain layout, Taiwan and Chinese PCB manufacturers are accelerating their southward migration. After the factory construction period of 2023-2024, a new factory start-up wave is expected in 2025. Because the newly built factories mostly introduce highly automated and high-end product production capacity planning to meet customers' expectations for future product production to be transferred to Thailand, Thailand is expected to become an emerging PCB center in Asia in the next few years.

According to the Taiwan Printed Circuit Association (TPCA), as the Sino-US trade war and technology war heat up, Southeast Asia, with its low cost and ASEAN market size, is favored by PCB index companies from all over the world, especially Thailand, Vietnam and Malaysia; Southeast Asia will become an important new production cluster for PCBs and a new battlefield.

In 2024, Thailand's PCB output value is estimated to be US$3.26 billion, making it the largest PCB producer in Southeast Asia. Thailand was previously an overseas production base for Japanese PCB manufacturers. As geopolitics drives end customers to require China+1 in their supply chains, the Thai government has introduced a number of preferential investment policies. Based on the importance, technology and scale of investment, up to 8 years of tax exemption can be enjoyed. So far, it has attracted more than 40 PCB manufacturers from China and Taiwan to invest in Thailand, and it is expected to become the largest PCB production cluster in Southeast Asia in the short term.

Since 2024, a small number of manufacturers have officially completed and put into use their new factories in Thailand, but 2025 will be the peak year for the completion of new factories. In addition to Huatong (2313), which has already opened a new factory, including Xinxing (3037), Zhending-KY (4958), Jinxiang Electronics (2368), Jingpeng (2355) and Yaohua (2367) will all have new factories joining the production in 2025.

TPCA said that the development pattern of the global PCB industry is showing regional competition characteristics with the reorganization of geopolitics and industrial policies, and the advent of the Trump 2.0 era may further push the United States to adopt tougher protectionist measures, such as imposing higher tariffs on PCBs imported from more countries and accelerating technological decoupling, which will pose greater challenges to the integration and stability of the global supply chain.

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