On July 29, 2026, the semiconductor sector on the Stock Exchange of Thailand extended its rally, closing 2.3% higher, outperforming the SET index's 0.8% gain. Driven by sustained global demand for AI chips and the implementation of Thailand's semiconductor incentive policies, Thai chip stocks attracted capital flows. With ex-dividend dates approaching for several high-dividend stocks, dividend-focused investors also took notice.
Global AI Chip Demand Reaches Thailand
A report from the International Semiconductor Industry Association shows that the global semiconductor market reached $168 billion in Q2 2026, up 12% year-on-year, with AI chips contributing over 30% of the growth. This trend is reaching Thailand through the supply chain. As Southeast Asia's electronics manufacturing hub, Thailand hosts many packaging, testing, discrete device, and IC design firms, benefitting directly from increased global chip orders.
The Electronics Industry Group of the Federation of Thai Industries noted that Thai semiconductor exports grew 18% year-on-year in the first half of 2026, with increases of over 15% to the US and China. Additionally, the recently passed Semiconductor Industry Promotion Act offers tax breaks and R&D subsidies, boosting market confidence.
SET Semiconductor Sector Shines
As of July 29, the SET Semiconductor Index has risen 22% year-to-date, ranking third among all SET industry indices, behind Tech (+28%) and Healthcare (+15%). Of the 15 components, 12 gained, with some doubling their share price.
Key Stock Movements
- Hana Microelectronics (SET: HANA): Thailand's largest semiconductor packaging and testing firm, HANA announced an advanced packaging order from a US AI chip client, with mass production expected in Q4 2026. Its shares rose 4.5% to THB 48.50. The company declared an interim dividend of THB 0.85 per share, ex-date August 10, 2026, yielding about 3.5%.
- Delta Electronics (SET: DELTA): Known for power management components, its automotive power semiconductor business is growing fast. Benefiting from EV chip demand, DELTA shares rose 12% in July, with a current P/E of 45x. The board will meet on August 5 to discuss the interim dividend, with market expectations of at least 2% yield.
- SVI Public Company Limited (SET: SVI): This EMS provider recently entered chip packaging, developing SiP products with a Japanese partner. SVI shares rose 2.1% to THB 12.00. Its latest report shows revenue up 25% and net profit up 18%.
High-Dividend Strategy in Focus
As the semiconductor sector rises, some investors are locking in dividend income. According to the SET, the semiconductor sector's average dividend yield is about 2.8%, above the SET average of 2.2%. Companies like HANA, SVI, and KCE Electronics (SET: KCE) have consistent payout histories. KCE, Thailand's largest PCB maker, saw net profit rise 40% in H1 2026 due to AI server demand, and announced a special dividend of THB 1.20 per share, ex-date August 15.
Analysts note that amid fading Fed rate cut expectations and high global rates, Thai stocks combining growth and dividend yield are attracting capital. The semiconductor sector, with its technological barriers and rigid downstream demand, is a preferred choice.
Risk Warning and Outlook
Despite optimism, investors should watch for risks: first, global chip demand volatility—if AI investment cools or a recession hits, exports may suffer; second, Thailand lacks advanced wafer fabs, relying on packaging and components, limiting pricing power; third, baht volatility impacts export profits. However, many institutions expect the SET semiconductor sector to rise another 10-15% in H2 2026, recommending a focus on stocks with advanced packaging capabilities and high dividends.
Overall, the Thai SET semiconductor sector stands at the intersection of AI industry trends and policy support. While short-term gains are large, the long-term growth story remains clear. For dividend investors, seizing ex-dividend windows and combining fundamental stock selection could yield excess returns.
