Thailand's electronic industry is about to reach a saturation point, and its stance in the global supply chains has gradually become weaker. Thailand, therefore, needs to speed up reforming its electronic industry in line with the evolving technology products in the world market, instead of trying to compete with neighbors in terms of labor cost and manufacture of the same old products with a low portion of added value. Thailand may build on its strength and readiness for being a main production base for products with prospects in the international market such as automobiles and electrical appliances. The automotive industry is transitioning toward electric vehicles (EV). Meanwhile, the Internet of Things (IoT) is increasingly being used with electronic devices. This trend is set to rise in the future.
The investment to manufacture EV components is likely to be driven by car companies that have to comply with the investment promotional requirements by producing key components relating to electric motors. At the same time, the IoT-embedded electrical appliance manufacturing is likely to be backed by Thailand's readiness in terms of existing supply chains and potential to propel the digital services that are related to the IoT electrical appliances.
KResearch estimates that in the next three years, the evolution of electronic industrial structure toward the investment in EV and the IoT electrical appliance supply chains will boost Thailand's electronic exports back to positive territory (0.2 percent in 2022) for an additional export value of approximately USD1.298 billion against the initial estimate that Thailand's export growth would contract over the same period.