Thailand Attracts $690 Million in Advanced Materials Projects to Strengthen AI and EV Supply Chains

Thailand has attracted 35 advanced materials projects worth approximately $690 million (23.5 billion baht) since 2023, according to the Thailand Board of Investment (BOI). The projects, filed through the first half of 2026, represent a strategic shift for Southeast Asia's second-largest economy from downstream assembly toward high-value upstream production of materials critical to artificial intelligence, electric vehicles, and clean energy technologies.

The investments cover a range of advanced materials, including multilayer ceramic capacitors (MLCCs), thermal graphite films, high-performance ceramics, battery and fuel-cell materials, neodymium magnets, glass and quartz fabrics for printed circuit boards, and nanomaterials for precision manufacturing. These components are essential to the performance of AI servers and EVs, where lighter, more heat-resistant, and more conductive materials determine efficiency and reliability. A single high-end AI server can use up to 30,000 MLCCs.

"The world is moving toward products that are smaller and lighter, yet stronger and more efficient," said Mr. Narit Therdsteerasukdi, Secretary General of the BOI. "Producing advanced materials in Thailand is key to building sustainable industrial capacity, reducing reliance on imports, and opening the door for Thai companies to join higher-value supply chains."

The announcement matters because it signals a deepening of Thailand's industrial base beyond assembly and into the upstream materials that underpin future technologies. Thailand is already a production base for leading component makers, including Japan's Murata Electronics, which holds more than 35 percent of the global MLCC market, and Kyocera AVX Components, the world's top tantalum capacitor maker. New entrants include Taiwan's Fultech Fiber Glass, which makes glass fabric for printed circuit boards, including high-performance grades for AI servers, and Jones Tech, which produces synthetic and natural graphite films that dissipate heat from electronic devices.

Beyond electronics, the projects strengthen supply chains for electric vehicles, batteries, and clean energy. BGN Thai is producing coated foils for lithium-ion batteries, Phinis Well is making neodymium magnets for EV motors, and Xinyuan Graphite is manufacturing bipolar plates for hydrogen fuel cells. CoorsTek Advanced Materials, a subsidiary of US-based CoorsTek, has invested in ceramics for automotive pressure sensors and silicon nitride balls for hybrid bearings in EVs and wind turbines. Golden Egret Cemented Carbide is producing tungsten carbide powders for precision cutting tools, reinforcing Thailand's high-precision manufacturing base.

"The advanced materials industry taking root in Thailand today is the foundation of tomorrow's supply chains in electronics, EVs, batteries, and clean energy," Mr. Narit said. "The BOI will keep building this investment base, strengthening upstream materials and components, and supporting R&D, technology, and workforce development, to move Thailand from downstream to upstream production and make it the region's advanced materials hub."

The influx of investment also has implications for regional competition. As global suppliers seek to diversify production away from China and build resilient supply chains, Thailand's ability to attract upstream materials projects could give it an edge over neighboring countries in capturing higher-value segments of the electronics and automotive industries. For Thai companies, the presence of these advanced materials producers opens opportunities to integrate into global supply chains that were previously inaccessible.

The BOI, established in 1966, has spent six decades promoting high-value investment from both foreign and Thai investors. More information about its investment promotion services is available at https://www.boi.go.th/en/index/. The projects were announced through Media OutReach Newswire.