As AI investment shifts from processing chips to power, cooling and data infrastructure, Thailand has a major opportunity to attract fresh foreign direct investment (FDI) in its tech supply chains, according to Kiatnakin Phatra Securities.
Suppapong Iemkongaek, an equity research analyst at Kiatnakin Phatra Securities, stated on Monday that worldwide AI spending is no longer confined to software and chips, but is rapidly expanding into core infrastructure and downstream manufacturing, areas where Thailand holds cost advantages and strong competitive potential.
“Capturing this new FDI wave in advanced supply chains will elevate local manufacturing capabilities and cement Thailand’s role in the global AI ecosystem,” he said.
As AI systems scale up, power density per rack in data centres is surging from tens of kilowatts to approximately 600 kilowatts, with projections reaching 1 megawatt in the near future.
Consequently, the primary bottleneck in processing has moved from silicon chips to supporting infrastructure, particularly power distribution, thermal cooling and data transfer systems.
Key technologies expected to drive the next phase of investment include 800V Direct Current (800VDC) power systems, which increase voltage efficiency while reducing copper usage and heat generation, alongside optical connectivity solutions that overcome the speed and distance limitations of traditional copper wiring.
Kiatnakin Phatra Securities has evaluated that this acceleration in worldwide AI investment is set to spark a surge in FDI into Thailand, particularly across the semiconductor, printed circuit board (PCB) and advanced electronics sectors.
This growth is evidenced by rising demand for industrial property, with major industrial estate developers WHA Corporation and Amata Corporation projected to expand land sales by approximately 400 hectares and 320 hectares respectively per year.
While upstream technologies, like semiconductor design and fabrication, remain concentrated overseas, Thailand is gaining a stronger foothold in the AI semiconductor supply chain.
The country is carving out a vital niche in downstream manufacturing, final assembly and high-tech processing, offering a timely path to upgrade Thailand's overall manufacturing base, according to Kiatnakin Phatra Securities.
