AI-Data Centers Scramble for Chips, Market Disrupted; Urge Govt. to Promote Investment

MGR Online•Economy•157d ago

Reader Briefing

The Thai industrial sector is facing a severe chip shortage due to high demand from AI and Data Centers, prompting calls for increased domestic investment.

•The significant demand from AI and Data Centers is causing a global chip shortage and price hikes, impacting various electronic industries.
•Thailand's Board of Investment (BOI) aims to attract semiconductor and advanced electronics investments totaling 500 billion baht within five years.
•The government is urged to promote domestic investment to reduce reliance on imported chips amid global challenges like the Middle East conflict.

Overview

•Increased demand from AI and Data Centers is causing a severe shortage of chips.
•The chip shortage is causing prices to surge, making it difficult for other industries to compete.
•The year 2026 is predicted to be a very challenging and tiring year for the industrial sector.
•The chip shortage is exacerbated by global events like the Middle East conflict.
•The Thai government and BOI are actively seeking to attract significant investment in semiconductors and advanced electronics.
•The goal is to attract no less than 500 billion baht in investments for the semiconductor and advanced electronics industry within 5 years.
•Efforts are also underway to develop at least 80,000 skilled personnel in the semiconductor field within 5 years.
•BOI is engaging with major global chip manufacturers from the US and China to achieve these investment goals.

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Key Quotes

Supan Pongpanpaet

"Admit that chips are truly gone from the market right now, severely out of stock because AI is taking them all."

ยอมรับว่าตอนนี้ชิปมันหายไปจากตลาดจริงๆ ขาดตลาดมาก เพราะว่า AI เอาไปหมด

Supan Pongpanpaet

"We ourselves cannot compete; the current situation forces us to let the AI market take our chips first."

เราเองก็สู้ไม่ไหวสถานการณ์ตอนนี้ก็คงต้องยอมให้ตลาด AI แย่งชิปของเราไปก่อน

Key Entities

Person

Supan(สุพันธุ์)

Chairman of Synnex (Thailand) Public Company Limited and Honorary Chairman of the Federation of Thai Industries (FTI).

Organization

Synnex (Thailand) Public Company Limited(ซินเน็ค (ประเทศไทย) จำกัด (มหาชน))

A company mentioned in relation to its chairman's commentary on the chip shortage.

Federation of Thai Industries(สภาอุตสาหกรรมแห่งประเทศไทย)

An industrial organization whose honorary chairman commented on the chip shortage.

Appleℹ️

A mobile phone manufacturer that relies on chips for production, potentially affected by shortages.

BOI(บีโอไอ)ℹ️

Thailand's Board of Investment, which is setting targets to attract investment in the semiconductor industry.

Place

Data Centerℹ️

Facilities that require significant computing power and thus consume a large number of chips.

Law

National Committee on Semiconductor and Advanced Electronics Industry Policy(คณะกรรมการนโยบายอุตสาหกรรมเซมิคอนดักเตอร์และอิเล็กทรอนิกส์ขั้นสูงแห่งชาติ)

A national committee aiming to promote investment and development in the semiconductor and advanced electronics sector.

Timeline

2026

A year identified as challenging for the Thai industrial sector due to chip shortages and global events.

2025 - 2029

The five-year period targeted for attracting semiconductor and advanced electronics investments.