On July 26, 2026, the Thailand Board of Investment (BOI) officially approved a new chip industry promotion plan aimed at attracting global semiconductor companies to set up chip design centers and advanced packaging factories in Thailand through tax incentives and infrastructure support. Against the backdrop of surging global AI chip demand, this policy injects a strong stimulus into Thailand's semiconductor industry and has drawn investors' attention to chip-related stocks on the Thailand SET market.
BOI New Plan: Up to 15-Year Tax Exemption, Focus on Design and Packaging
According to an official BOI statement, the new plan targets companies engaged in chip design (IC Design) and advanced packaging, offering up to 15 years of corporate income tax exemption and exemption from import equipment tariffs. In addition, for companies setting up R&D centers in Thailand, BOI will provide additional R&D expense super deductions. BOI Secretary-General Narit Therdsteerasukdi said: "The global semiconductor supply chain is restructuring. With its electronics manufacturing base and geographical location, Thailand is poised to become a chip design and packaging hub in Southeast Asia."
The plan also covers talent development support. BOI will collaborate with multiple universities in Thailand to establish chip design training programs, aiming to train 10,000 professional engineers over the next five years. Industry analysts believe this move is intended to alleviate Thailand's chip talent shortage and lay the foundation for long-term growth.
Local Companies Respond: Delta and HANA Expand to Meet AI Wave
Following the BOI policy announcement, major local semiconductor companies quickly responded. Delta Electronics (Thailand) announced an investment of 12 billion baht by the end of 2026 to build a new advanced packaging factory in Prachinburi province, primarily for packaging and testing AI accelerator chips. Delta CEO Jack Liu stated: "Global AI chip demand grew 40% year-on-year in Q2 2026, and we are bullish on this trend. The new factory will adopt 2.5D and 3D packaging technologies, targeting the world's leading AI chip design companies."
Another Thai chipmaker, HANA Microelectronics, also announced the expansion of its chip design center in Rayong province, focusing on R&D of power management chips and sensor chips. HANA CFO Chaiyut Pornprapa noted: "AI applications require not only high-performance computing chips but also a large number of supporting analog chips. Our design center will target the IoT and automotive electronics sectors, which are growing rapidly."
Reacting to the news, on July 27 the SET index saw Delta Electronics shares rise 4.2% and HANA Microelectronics rise 3.8%, driving the entire tech sector higher. Analysts believe that the BOI policy combined with the global chip demand cycle could lead to a valuation re-rating of Thai chip stocks.
Global Context: AI Chip Demand Drives Semiconductor Market Growth
According to the latest data from industry research firm IC Insights, global semiconductor sales reached $165 billion in Q2 2026, up 18% year-on-year, with AI chips contributing about 35% of the increase. Giants like NVIDIA and AMD continue to increase orders with foundries such as TSMC and Samsung, but due to capacity constraints, some packaging processes are shifting to Southeast Asia. Thailand, with its mature electronics manufacturing clusters (e.g., hard drives, automotive electronics), has become a candidate for advanced packaging.
Additionally, subsidy conditions under the US CHIPS Act require companies to establish capacity outside China, prompting many chip design firms to consider Southeast Asia. Thailand's new BOI plan aligns well with this trend.
Investment Logic: Why Invest in Thai Chip Stocks?
For SET investors, the investment logic for the chip sector is increasingly clear:
- Policy Dividends: The new BOI plan offers up to 15-year tax holidays, directly boosting corporate profit margins and attracting foreign and local expansion.
- Industry Cycle: The global semiconductor market is in an AI-driven upcycle, with strong demand for chip design services and packaging.
- Import Substitution: Thailand's electronics industry has long relied on imported chips; improved local design capabilities could enable substitution in areas like automotive electronics and smart home appliances.
- Valuation Advantage: Currently, Thai chip stocks trade at an average P/E ratio of about 18x, well below Taiwan (22x) and South Korea (25x), providing a margin of safety.
However, investors should also note risks: the chip industry has rapid technological iteration, and Thailand's ecosystem still needs time to develop; additionally, geopolitical factors could affect supply chain stability.
Future Outlook: A Golden Decade for Thailand's Chip Industry?
BOI estimates that after the new plan is implemented, Thailand's chip design industry will grow from less than 5 billion baht to 30 billion baht within five years, while advanced packaging output value could exceed 50 billion baht. If global AI chip demand remains strong, Thailand could become the next semiconductor hub after Malaysia and Vietnam.
For investors focused on the SET market, stocks such as Delta Electronics, HANA Microelectronics, and related equipment suppliers like KCE Electronics are worth in-depth research. As the AI wave opens the door to semiconductor industry expansion, Thai chip stocks may be at the starting point of a new growth cycle.
(Disclaimer: This article is based on publicly available information and does not constitute investment advice. Investing involves risks. Please act with caution.)
