Global semiconductor industry faces supply and demand imbalances due to disruptions in the supply chain and increased demand. Many countries prioritize domestic production. Thailand seeks to become a major player. Companies need to adapt and develop skills.
The Imbalances and Shift to Thailand
The global semiconductor industry is experiencing imbalances in supply and demand due to disruptions in the supply chain and increased demand. As a result, there is a potential for a shift in production facilities to Thailand. Many countries, including the US, EU, and China, are prioritizing domestic semiconductor production to reduce dependence on foreign suppliers. Embracing change through collaborations, joint ventures, and skills development is essential for companies to adapt to these new industry dynamics.
Challenges in the Semiconductor Industry
The semiconductor industry is facing challenges due to supply and demand imbalances, driven by disruptions in the manufacturing supply chain and increased demand. Various events such as the China-US trade war, the COVID-19 pandemic, and the Russia-Ukraine dispute have exacerbated this imbalance. Despite the resumption of increased production capacity and output, there is a need for close monitoring as demand is poised for another surge.
Potential for Thailand’s Semiconductor Industry
Thailand holds the potential to become a significant player in the semiconductor industry through the relocation of production facilities and increased investments. The country’s strategic geographical location, robust infrastructure, and skilled workforce provide a competitive advantage. However, Thai companies must embrace change and strengthen their capabilities to align with the future demands of the semiconductor industry through collaborations, joint ventures, and skills development.