Thailand Warned: We're Just a Chip Assembler, Not a Chip Maker

Thailand risks falling behind in the global semiconductor race unless it moves beyond basic chip assembly, the country's electronics industry body warns. The Thailand Electronics and Computer Industry Association (ECIA) says the nation must invest in "front-end" production—the complex, high-value stage where silicon wafers are turned into working chips. Thailand currently focuses on "back-end" work: cutting, packaging, and testing finished chips. This is the cheaper, less technical end of the supply chain. Front-end manufacturing requires advanced factories, called fabs, and highly skilled workers. Few countries have them. The ECIA argues that without this upgrade, Thailand will stay dependent on foreign technology and miss out on billions in revenue. The group is urging the government to support training programs and offer incentives to attract chipmakers. It points to Taiwan, South Korea, and Singapore as models. Those economies built front-end capacity decades ago and now dominate the industry. Thailand's electronics sector employs hundreds of thousands of people. But most jobs remain low-wage assembly work. The ECIA says moving up the chain would create better-paying positions and strengthen the country's economic resilience. No timeline or specific budget has been announced. The government has not yet responded to the proposal.