Taiwanese semiconductor manufacturer Foxsemicon Integrated Technology (FITI) has secured privileges from Thailand Board of Investment (BOI) for an investment budget of 10.5 billion baht (around US$306 million). Accordingly, the company will build a factory to produce critical components and modules and systems for semiconductor equipment.

UniEQ Integrated Technology Ltd. applied the investment privileges on behalf of FITI, a subsidiary of Taiwanese electronics juggernaut Foxconn.

“This is an important investment by a company which is a significant investment by a company primarily shared by Foxconn Technology Group and is a leading player in the global semiconductor wafer fab equipment supply chain,” said Mr. Narit Therdsteerasukdi, Secretary General of the BOI.

Moreover, Therdsteerasukdi said, “It comes at the perfect time as we engage in the drafting of Thailand’s National Semiconductor Strategy.”

Chain of Factories

Thailand’s newly appointed National Semiconductor and Advanced Electronics Policy Committee (Semiconductor Board) made the approval during its meeting last week. No less than Thai Prime Minister Paetongtarn Shinawatra chaired the meeting. Furthermore, the Board also approved the framework for the Strategy and the development of a skilled workforce and prepare them for expected influx of investments.

Accordingly, investments in the sector that could bring at least 500 billion baht into the country by 2029 as per the Government’s target.

FIIT, primary shared by Taipei-based Hon Hai Group, has production sites in Miaoli County, Taiwan, in Kunshan, Jiangsu, and in Songjiang, Shanghai, in China. In addition, it has service and sales offices in California and Texas, in the United States.

The new Thai manufacturing facilities will rise in Amata City Chonburi Industrial Estate and Amata City Rayong Industrial Estate, located in Chonburi and Rayong provinces. The two provinces are part of Thailand’s hi-tech hub known as the Eastern Economic Corridor.

Influx of Investments

The factory will produce high-vacuum and high-purity critical components and important modules which tailed made for Etching, Thin Film and CMP process. Specifically, they are all essential elements in the manufacturing of the machinery used in the semiconductor production process (wafer fabrication).

The factory will employ more than 1,400 qualified Thai workers. The plant will source about a quarter of its raw materials domestically. The expected value of its annual exports will be more than 6 billion baht.
Applications for investment promotion in Thailand in the first nine months of 2024 increased 42% year-on-year in value to a combined 722.5 billion baht, the highest level since 2015. There was a significant influx of FDI in large projects in target sectors including the electrical appliances and electronics (E&E), and data centers. During the period, the E&E sector led with 291 projects worth a combined 183.4 billion baht.

16 December 2024