Taiwanese electronics companies are interested in building a new industrial estate based on a smart city concept in Rayong to serve manufacturers expanding into Thailand, according to the Industrial Estate Authority of Thailand (IEAT).
The industrial complex aims to specifically serve Taiwanese firms, said Veeris Ammarapala, the IEAT governor.
“The authority is in talks with around 20 Taiwanese investors who want a plot of industrial land, especially in the Eastern Economic Corridor [EEC],” he said on Wednesday.
Many Taiwanese investors want to relocate their production facilities out of their home country to avoid the impact of tensions with China, said Mr Veeris.
Electronics firms in Taiwan are major suppliers to many industries. They have a 35% global market share, according to the IEAT.
The EEC, which covers parts of Rayong, Chon Buri and Chachoengsao provinces, is being developed into a high-tech industrial hub, hosting 12 targeted S-curve industries, including new-generation car production and smart electronics.
If the talks with Taiwanese investors prove successful, the IEAT will form a joint venture with the Taiwanese electronics and parts association to invest in the new industrial estate, said Mr Veeris.
“Under the smart city concept, the industrial estate will promote plans to reduce greenhouse gas emissions,” he said.
Many Taiwanese companies have invested in Thailand and received Board of Investment (BoI) privileges.
From January to August, the BoI approved 20 project proposals submitted by Taiwanese electronics and printed circuit board (PCB) manufacturers. The total investment value is 30 billion baht.
The Thai government is also encouraging the chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC) to invest in the country as the company is looking to expand its business to Singapore and other countries in Asean.
“The IEAT is in talks with TSMC,” said Mr Veeris, notng that the company commands a 53% market share in the global semiconductor market.