The Board of Investment (BoI) is in talks with semiconductor manufacturers from the US and Taiwan to encourage them to expand their production facilities to Thailand, part of government efforts to grow the electric vehicle (EV) industry.
The government's EV incentive package and a recent proposal to subsidise EV battery manufacturing will make Thailand an attractive destination for foreign investment, said ML Chayotid Kridakon, an advisor to the prime minister.
"Thailand will become a hub for EVs now that global car makers, especially those from China, choose Thailand as their manufacturing base," he said.
Narit Therdsteerasukdi, secretary- general of the BoI, said the government wants to invite large chipmakers to invest in Thailand.
Last year, the BoI discussed with Taiwan Semiconductor Manufacturing Co (TSMC) the possibility of investing in manufacturing in Thailand. The talks came as the company was seeking to expand its investment to Singapore and other Asean countries. TSMC is the world's largest contract semiconductor maker, according to media reports.
The BoI will also encourage foreign companies to invest in EV battery manufacturing in Thailand. An overseas roadshow campaign is one method to publicise the country's incentives among businesses, said Mr Narit.
He said the BoI plans to organise roadshows in Guangzhou, Shanghai and Shenzhen to meet prospective Chinese investors. Investors in South Korea and Europe are also main targets, said Mr Narit.
Last year, the cabinet approved a package of incentives including tax cuts and subsidies to promote EV consumption and production between 2022-2023. The subsidies range from 70,000 baht to 150,000 baht depending on the type and model of vehicle, while there are lower excise tax and import duties on completely knocked-down and completely built-up units.
Participating car companies are committed to starting production of EVs in Thailand from 2024. However, Mr Narit said some EV investors are calling on the government to postpone the production year.
The Industry Ministry expects the cabinet to be asked this month to approve an incentive package for EV battery production.
