AI-Driven Growth to Propel Thailand into Global Top 3 PCB Producers. Prismark highlights AI megatrend boosting demand; BOI rolls out comprehensive incentives; Investors see Thailand on track for Global Top 3

The global electronics industry is entering a pivotal transition. According to the latest report by Prismark Partners LLC, a leading global electronics consultancy, presented at the CEO Networking Night organized by the Thailand Printed Circuit Association (THPCA) under Thailand Electronics Circuit Asia (THECA 2025), the megatrends of Artificial Intelligence (AI) and High-Performance Computing (HPC) have emerged as new economic growth drivers, pushing demand for Printed Circuit Boards (PCB) and advanced substrates to record highs.

Dr. Shiuh-Kao Chiang (Left in Figure 3), an electronics industry consultant at Prismark, revealed that global growth is being driven by rising investments in digital infrastructure, particularly in the United States. AI data center investments surged by more than 23% since 2023, contributing to U.S. GDP growth in the first half of 2025 on par with household consumption. The server, data center, and storage markets are expected to expand continuously through 2026.

Prismark projects the global PCB and substrate market to expand from USD 73.6 billion in 2024 to USD 94.7 billion by 2029, led by the Server/Data Storage PCB segment, forecast to grow at 11.6% annually. This presents a golden opportunity for countries with advanced manufacturing capabilities. Southeast Asia is poised to rise as the world’s No. 2–3 production hub, with Thailand singled out as the standout destination, supported by strong investment inflows during 2024–2025.

Supply Chain Shift – Thailand Emerges as a Strategic Choice

Prismark also underscored a major geopolitical realignment in electronics manufacturing. After more than two decades of dominance, China is facing rising labor costs, U.S.–EU trade measures, and geopolitical pressures. As a result, leading companies are diversifying investments into new hubs, particularly Thailand, Vietnam, and Malaysia, while the U.S., Japan, and Europe accelerate reshoring strategies to reduce reliance on China.

Former Minister of Commerce, Mr. Pichai Naripthaphan (2nd from the right) commented, “Thailand is no longer just an alternative, but is becoming the new center that investors trust. Even though China still accounts for 50–70% of global PCB production, the diversification trend is undeniable.”

Thailand produced more than USD 2 billion worth of PCBs in 2023, representing about 4% of the global market, making it ASEAN’s largest PCB production base with over 50 factories and cumulative investments exceeding USD 5 billion. New investments exceeding USD 1 billion in PCB materials, machinery, and production equipment have resulted in Thailand capturing over 60% of ASEAN’s new PCB investments.

BOI Support – Building a Full Ecosystem Hub

Ms. Sudhasinee Smitra (Right in Figure 3), senior executive investment advisor at the Thailand Board of Investment (BOI), affirmed that BOI is fully committed to supporting the electronics and PCB sectors through comprehensive measures, including tax incentives, guaranteed stable energy and water supply, workforce development in partnership with universities and research institutes, and the establishment of the Thailand Electronics Circuit Center (TECC) as a hub for talent development and innovation.

“The PCB industry is highly capital-intensive. Thailand welcomes both domestic and foreign investors to build a complete supply chain — from PCB and PCBA to materials and equipment. Our goal is to make Thailand not just a production base, but a true global hub,” Ms. Sudhasinee said.

THPCA Targets Global Top 3 Ranking

Mr. Swaek Prakitritanon (2nd from the left), Vice President and Secretary of the Thailand Printed Circuit Association (THPCA), Chairman of the Thailand Electronics Circuit Center and Chairman of Auromex Co., Ltd., concluded that THECA serves as a crucial platform to reinforce investor confidence and strengthen global linkages. The Association’s long-term goal is to elevate Thailand into the world’s Top 3 PCB manufacturing base.

“This is not just an exhibition of innovations, but the building of a strong ecosystem that attracts investors and positions Thailand as a global PCB hub,” Swaek emphasized.

Despite challenges in energy supply and skilled workforce, analysts at Prismark remain confident that Thailand, with its supply chain strengths, policy support, and growing investor trust, is firmly on track to become a world-class electronics and PCB hub.

Thailand’s PCB Industry Poised for the AI and EV Era

Prismark further noted that PCB demand will surge in line with megatrends in AI, Electric Vehicles (EVs), and Semiconductors:

• AI Servers: Market expanding at 30% annually, projected to reach USD 260 billion by 2027, requiring advanced HDI and substrate solutions.

• Electric Vehicles (EVs): Thailand’s strong automotive base is driving demand for high-power and thermal management PCBs.

• Specialized Semiconductors: Segments such as MEMS, Photonics, and Robotics require advanced PCB and packaging technologies.

Dr. Shiuh-Kao Chiang summarized, “Thailand has the potential to upgrade its production to High Layer Count (24+ layers), Advanced HDI, and Flexible PCBs within the next five years, making it one of the few countries fully capable of serving markets such as AI servers and satellite systems.”

With AI-driven demand, global supply chain restructuring, continued investment inflows, and proactive BOI measures, Thailand is now firmly positioned as the rising global hub for electronics and PCB in the next 5–10 years.

News & Illustration By:

Mr. Sarawut Burapapat

Phone: 0850710071 Line ID: gobkk
Email: pr@market-comms.co.th or marcomsmthai@gmail.com