The Board of Investment (BoI) has approved 20 new investment projects worth 30 billion baht from Taiwan-based electronics companies that want to use Thailand as their new export base.
The move should fuel growth of the electronics industry as the firms, especially manufacturers of printed circuit boards (PCBs), seek new investment destinations to evade the impact of geopolitical conflicts, including China-Taiwan tensions, said the BoI.
Investing in Thailand also means lower operating costs than in the US and Europe.
The BoI granted investment incentives to the Taiwanese firms during January and August.
"Some firms will produce PCBs, while others will produce notebooks for HP," said Narit Therdsteerasukdi, secretary-general of the BoI, referring to US-based information technology firm Hewlett-Packard.
Taiwan is famous for its electronics manufacturing, holding a 35% global market share.
Semiconductors from Taiwan command a 65% global market share, with Taiwan Semiconductor Manufacturing Co considered a market leader.
"If we include other electronics companies in Thailand, especially those from China and Japan, the combination can make the country a major PCB manufacturing base in Asean," said Mr Narit.
The BoI plans to invite more electronics firms to invest in Thailand under its five-year investment promotion strategy.
Under the strategy for 2023-27, the BoI wants to support investment in high tech, green and smart industries, as well as businesses driven by creativity and innovation, all of which are believed to propel a new economy and increase competitiveness.
"We are in talks with more Taiwanese firms in order to encourage them to invest here," he said.
Taiwan is among the board's target countries in Asia, with investment expected to help boost S-curve industry development in the Eastern Economic Corridor (EEC).
The EEC, which covers parts of Chon Buri, Rayong and Chachoengsao provinces, is projected to be developed into the country's high-tech industry hub.