US Trade Secretary Encourages Semiconductor Industry Expansion in Asia
US Trade Secretary Gina Raimondo’s recent visits to Asian countries were designed to identify areas where US firms are keen to expand semiconductor and electronics production. In her visit to Thailand, Raimondo explained that US companies are prepared to invest heavily in local industries.
The Thai authorities are interested in attracting investment into their local electrical and electronics industries. Speaking at an event in Bangkok, Raimondo reiterated, “Semiconductor component production is dangerously concentrated in one or two countries”. The U.S. is ready to stimulate investment projects in 14 countries as part of the Indo-Pacific Economic Framework (IPEF), including Thailand, whose local government is prepared to offer incentives and subsidies to investors.
Exploring Diversification in Semiconductor Supply Chains
Raimondo emphasised during her visit to Thailand that such expansion benefits all IPEF participants by diversifying semiconductor supply chains. As with Vietnam, the Philippines, or Malaysia, Thailand’s semiconductor industry specializes predominantly in chip packaging and testing operations. The county hosts specific enterprises from the Netherlands, the US, Japan, and South Korea. Raimondo declared, “As American multinational companies seek ways to diversify their supply chains, Thailand becomes an increasingly attractive location”. It is worth noting that she recently visited the Philippines, pledging to attract American company investments in the region to a total sum of $1 billion, concentrated in alternative energy, electric transport, and digitalisation sectors.
This post was last modified on 03/14/2024