Display mode (Doesn't show in master page preview)

17 Mar 2023


Electronics exports, 2023: Shrinking 4.5 percent amid numerous challenges despite benefits from geopolitical issues (Current Issue No.3390)


        In recent years, geopolitical issues between the US allies and China have contributed to changes in the global electronics supply chain. One of these is the fact that the US allies such as Japan and South Korea have reduced their dependence on China and begun to gradually diversify their electronic production bases from China to various regions, including ASEAN. Thailand has become one of the destinations for such investments, particularly the assembly of simple electronic products.
        However, the benefits of such geopolitical issues on the Thai electronics industry may not be sufficient to offset the challenges posed by ebbing demand for electronics worldwide due to the sluggish global economy, which may lead to a recession, plus a cyclical downturn in the global electronics industry, especially computers, and increased competition from neighboring nations.
        KResearch expects that the value of Thai electronics exports will shrink by 4.5 percent in 2023, against the 5.0 percent growth reported for 2022. However, several electronics manufacturers may see brighter prospects, including those that have adjusted their business portfolios towards the thriving automotive and smart electrical appliance markets.