Billions are pouring into EEC factories

The Board of Investment (BoI) is helping the government grow the semiconductor industry by granting investment privileges to UNIQUE Integrated Technology, which is investing 10.5 billion baht to build factories to produce and export machinery parts and equipment used in the semiconductor industry.

UNIQUE Integrated Technology is a subsidiary of Foxsemicon Integrated Technology Inc, which is part of Taipei-based Hon Hai Group, known globally as Foxconn.

“This is an important investment by a subsidiary of Foxconn, a leading player in global semiconductor wafer fab [fabrication],” said Narit Therdsteerasukdi, secretary-general of the BoI.

Semiconductor wafer fabrication changes silicon wafers into integrated circuits, which are widely used in electronic appliances, including smartphones.

“The investment comes at a perfect time as we engage in the drafting of Thailand’s National Semiconductor Strategy,” Mr Narit said.

Last week, the newly appointed National Semiconductor and Advanced Electronics Policy Committee, or Semiconductor Board, approved at a meeting chaired by Prime Minister Paetongtarn Shinawatra the framework for the development of a skilled workforce to prepare for a new wave of foreign direct investment in the sector, which could bring at least 500 billion baht into the country by 2029.

UNIQUE Integrated Technology’s production facilities are to be located in Amata City Chon Buri Industrial Estate and Amata City Rayong Industrial Estate, located in Chon Buri and Rayong provinces, respectively.

The two provinces, along with Chachoengsao, form the Eastern Economic Corridor, which is envisioned as Thailand’s high-tech industrial hub.

The company plans to produce shields, chambers, high-purity valves and sub-assembly modules, all of which are essential elements in the manufacturing of the machinery used in the semiconductor production process (wafer fabrication).

UNIQUE plans to employ more than 1,400 Thai workers and source more than a quarter of its raw materials domestically. The expected value of its annual exports is more than 6 billion baht.

According to the BoI, applications for investment promotion during the first nine months of 2024 increased 42% year-on-year in value to a combined 723 billion baht, the highest level since 2015.

The investments include electrical appliances and electronics (E&E) as well as data centre development projects.

During the period, the E&E sector led with 291 projects worth a combined 183 billion baht.