The inauguration of a 48-billion-baht power semiconductor factory for German firm Infineon Technologies AG will be a crucial part of Thailand’s “All in AI” scheme, says Finance Minister Ekniti Nitithanprapas.
“Thailand must advance on two fronts simultaneously: ‘AI in All’ and ‘All in AI’, ” said Mr Ekniti at the plant’s opening ceremony in Samut Prakan on Thursday.
AI (artificial intelligence) in All means using the technology to raise productivity across every sector of the economy, while All in AI aims to develop the infrastructure that an AI economy requires, he noted.
Infineon’s investment is a major contribution to All in AI, anchoring the semiconductor capabilities needed for AI, electric vehicles, clean energy, data centres and industrial automation.
The company’s first facility, Module A, is located in the Araya Industrial Estate and becomes Infineon’s third power module production hub, alongside sites in Germany and China.
Upon completion of all five planned modules, the complex is expected to become the company’s largest back-end assembly and testing centre worldwide.
“We chose Thailand for its mature industrial ecosystem, strong automotive and electronics base, and established semiconductor cluster,” said Alexander Gorski, chief operating officer of Infineon Technologies AG.
“This manufacturing hub will help Infineon balance its regional production network, strengthen supply chain resilience and capture growing demand across Asia.”
Demand for power semiconductors — specialised chips that regulate and convert electrical power while limiting energy loss and heat — is growing alongside investment in data centres, robotics, electric and autonomous vehicles, and industrial systems.
The global power semiconductor market is projected to grow from US$60 billion in 2025 to more than $107 billion by 2035.
Infineon’s new facility begins operations with Phase 1, or Module A, which includes 30,000 square metres of cleanroom space and a dedicated prototype R and D centre.
Across five planned phases, Modules A through E, the site is expected to expand to 150,000 sq m of cleanroom space.
Under an investment package approved by the Board of Investment (BoI), Infineon is expected to create more than 5,000 skilled local jobs, or about 1,000 positions in each planned phase.
“The semiconductor ecosystem is deeply interconnected and Thailand is stepping up to play an important role in the global supply chain,” said Prime Minister Anutin Charnvirakul, who also presided over the opening ceremony.
“Our national semiconductor strategy sets a clear direction for building a competitive and resilient chip industry.”
Narit Therdsteerasukdi, secretary-general of the BoI, said the strategy goes far beyond attracting capital or adding production capacity.
“This strategy is about building technological capability in Thailand,” he said.