Electronics and Electrical Appliances Industry
- Production of electrical appliances
- Production of parts or equipment used for electrical parts
- Production of telecommunication, transmission, and other similar devices
- Production of parts for telecommunication and transmission devices
- Production of materials for microelectronics
- Software
- E-commerce
- Digital Services
Production of electrical appliances
Thailand is Southeast Asia’s largest production hub for electronic appliances and is one of the largest manufacturers of air conditioners and refrigerators in the world. The country is therefore well-positioned to become a major hub for large-scale investment into the electronics industry not only due to its skilled workforce but also the facilities and infrastructure available to manufacturers. Over the years, major producers from Japan, Germany, Korea, and Taiwan have established plants in the Kingdom and become key contributors to the country’s economy. Due to its significance, the Thai government incentivizes projects venturing into this sector through privileges provided by the Board of Investment. Projects in this sector can produce various items such as air conditioner, freezers, refrigerators, and other appliances.
Conditions
Thailand is Southeast Asia’s largest production hub for electronic appliances and is one of the largest manufacturers of air conditioners and refrigerators in the world. The country is therefore well-positioned to become a major hub for large-scale investment into the electronics industry not only due to its skilled workforce but also the facilities and infrastructure available to manufacturers. Over the years, major producers from Japan, Germany, Korea, and Taiwan have established plants in the Kingdom and become key contributors to the country’s economy. Due to its significance, the Thai government incentivizes projects venturing into this sector through privileges provided by the Board of Investment. Projects in this sector can produce various items such as air conditioner, freezers, refrigerators, and other appliances.
Conditions
- Manufacturers of advanced electrical products that have their own design processes are eligible for A2 privileges whereas those without their own design processes are to receive A3 privileges. These projects must also produce goods that are able to connect to the internet or possess control systems that allow complex functions.
- Projects involved with the production of air conditioners, refrigerators, freezers, washing machines, and dryers must adhere to Thailand’s Energy Efficiency Standards, and goods produced by these manufacturers must be certified with a High Energy Efficiency Label from the Ministry of Energy.
- Those producing other electrical goods that have not been defined here will be granted B1 privileges.
Production of parts or equipment used for electrical parts
Thailand is a major player in the global electronics market and is among the biggest producers of appliances such as air conditioners and refrigerators. Having said this, Thailand is also a major producer of electronic parts used by manufacturers to make finished goods for consumers. Given the country’s skilled workforce and adequate infrastructure, the Kingdom has been chosen by several multinational companies from Japan, Germany, and Taiwan, among others, as a manufacturing hub. The Board of Investment provides privileges to manufacturers producing electrical parts such as inverters, circuit breakers, transformers, and microchips. This particular activity refers to projects producing circuitry and other similar electronic products.
Conditions
Thailand is a major player in the global electronics market and is among the biggest producers of appliances such as air conditioners and refrigerators. Having said this, Thailand is also a major producer of electronic parts used by manufacturers to make finished goods for consumers. Given the country’s skilled workforce and adequate infrastructure, the Kingdom has been chosen by several multinational companies from Japan, Germany, and Taiwan, among others, as a manufacturing hub. The Board of Investment provides privileges to manufacturers producing electrical parts such as inverters, circuit breakers, transformers, and microchips. This particular activity refers to projects producing circuitry and other similar electronic products.
Conditions
- Manufacturers of advanced electrical products that have their own design processes are eligible for A3 privileges whereas those without their own design processes are to receive A4 privileges.
- Producers of LED lamps are eligible for A4 privileges.
- Projects manufacturing compressors or motors for electrical appliances such as air conditioners, refrigerators, and fans are granted A4 privileges. Goods must be certified by the Ministry of Energy with a High Energy Efficiency label.
- Those involved with the production of wire harnesses will be eligible for B1 privileges.
- The production of high-density energy storage, namely batteries, are given A2 privileges. The power output and number of cycles delivered by high-density batteries or supercapacitors are subject to approval by the Board.
Production of telecommunication, transmission, and other similar devices
Thailand is Southeast Asia’s largest production hub for electronic appliances and is one of the largest manufacturers of air conditioners and refrigerators in the world. The country is therefore well-positioned to become a major hub for large-scale investment into the electronics industry not only due to its skilled workforce but also the facilities and infrastructure available to manufacturers. Over the years, major producers from Japan, Germany, Korea, and Taiwan have established plants in the Kingdom and become key contributors to the country’s economy. The Board of Investment provides privileges to manufacturers electrical devices such as security control equipment, audiovisual products, and/or wireless telecommunication devices. These activities also include providing materials and services related to fiber-optic communication systems and office electronics.
Conditions
Thailand is Southeast Asia’s largest production hub for electronic appliances and is one of the largest manufacturers of air conditioners and refrigerators in the world. The country is therefore well-positioned to become a major hub for large-scale investment into the electronics industry not only due to its skilled workforce but also the facilities and infrastructure available to manufacturers. Over the years, major producers from Japan, Germany, Korea, and Taiwan have established plants in the Kingdom and become key contributors to the country’s economy. The Board of Investment provides privileges to manufacturers electrical devices such as security control equipment, audiovisual products, and/or wireless telecommunication devices. These activities also include providing materials and services related to fiber-optic communication systems and office electronics.
Conditions
- Activities eligible for A2 privileges include: the production of organic and printed electronics, transmission devices used in fiber-optic and wireless communication systems, electronic control and measurement instruments, and security control equipment.
- The production of telecommunication devices is eligible for A3 privileges.
- A4 privileges are given to manufacturers of office electronics and audio-visual products.
- Producers of other products in this sector are given B1 privileges.
Production of parts for telecommunication and transmission devices
Thailand is a major player in the global electronics market and is among the biggest producers of appliances such as air conditioners and refrigerators. Having said this, Thailand is also a major producer of electronic parts used by manufacturers to make finished goods for consumers. Given the country’s skilled workforce and adequate infrastructure, the Kingdom has been chosen by several multinational companies from Japan, Germany, and Taiwan, among others, as a manufacturing hub. The Board of Investment provides privileges to manufacturers producing electrical parts such as solar cells, materials used for fiber optics, hard disks, and other components used to produce telecommunication and transmission devices.
Conditions
Thailand is a major player in the global electronics market and is among the biggest producers of appliances such as air conditioners and refrigerators. Having said this, Thailand is also a major producer of electronic parts used by manufacturers to make finished goods for consumers. Given the country’s skilled workforce and adequate infrastructure, the Kingdom has been chosen by several multinational companies from Japan, Germany, and Taiwan, among others, as a manufacturing hub. The Board of Investment provides privileges to manufacturers producing electrical parts such as solar cells, materials used for fiber optics, hard disks, and other components used to produce telecommunication and transmission devices.
Conditions
- A2 privileges are given to producers of parts for organic and printed electronics, solar cells, reception, and wireless devices, measurement equipment, security control equipment, hard disk drives, solid-state drives, and flexible printed circuits.
- A3 privileges are given to manufacturers of hard disk drives, parts for solar-powered products, semiconductors, parts for photonic devices, flat panel displays, and multi-layered printed circuit boards.
- Manufacturers of top covers or peripherals for hard disk drives, memory storage equipment, print circuit boards, electro-magnetic products, passive components, audio-visual products, and parts for electronic products are given A4 privileges.
- Producers of any other parts for electronic products are given B1 privileges.
Production of materials for microelectronics
Semiconductors account for almost a quarter of Thailand’s entire electronics export, supplying materials for both local producers as well as those abroad. In order for the industry to stay competitive, players must continuously come up with innovative ways to optimize performance while maintaining cost-effectiveness. As a significant contributor to the Thai economy, the Board of Investment provides privileges to foreign investors seeking to participate in large-scale projects in this sector, particularly those engaged in significant R&D activities.
Conditions
Semiconductors account for almost a quarter of Thailand’s entire electronics export, supplying materials for both local producers as well as those abroad. In order for the industry to stay competitive, players must continuously come up with innovative ways to optimize performance while maintaining cost-effectiveness. As a significant contributor to the Thai economy, the Board of Investment provides privileges to foreign investors seeking to participate in large-scale projects in this sector, particularly those engaged in significant R&D activities.
Conditions
- Producers of wafers will be granted A2 privileges while projects producing material-based ‘Thin Film Technology’ will be given A3 privileges.
- Manufacturing processes in this field must be approved by the Board
- The cost of refurbishing existing machines is considered an investment and will therefore be taken into account when calculating the project’s income tax exemption. However, the price of used machines will not be considered an investment.
Software
Thailand is become a significant hub for investments into the software industry given its world-class infrastructure, optimal broadband speeds, and competitive labor costs. As part of the government’s Thailand 4.0 initiative, the country is looking towards providing incentives for projects in this sector to meet the growing demand for big data analytics, industrial software, and cyber security. Therefore, the Board of Investment provides a series of privileges to foreign investors seeking to invest in large-scale projects in this field, particularly those relevant to big data, automation, cyber security, and other high value-added solutions. In particular, projects which provide the necessary skills to Thais will be particularly valued by the Board.
Conditions
Thailand is become a significant hub for investments into the software industry given its world-class infrastructure, optimal broadband speeds, and competitive labor costs. As part of the government’s Thailand 4.0 initiative, the country is looking towards providing incentives for projects in this sector to meet the growing demand for big data analytics, industrial software, and cyber security. Therefore, the Board of Investment provides a series of privileges to foreign investors seeking to invest in large-scale projects in this field, particularly those relevant to big data, automation, cyber security, and other high value-added solutions. In particular, projects which provide the necessary skills to Thais will be particularly valued by the Board.
Conditions
- Projects producing embedded software and high value-added software are eligible for A1 privileges.
- Those producing enterprise software or digital content are able to avail A3 privileges with no cap for corporate income tax exemptions.
- Projects are required to have at least 1.5 million Baht in annual expenses for IT personnel or have a minimum investment of at least 1 million Baht excluding the cost of land as well as working capital.
- Projects must also include software development processes indicated by the Digital Economy Promotion Agency (DEPA).
- Projects with an investment of 10 million Baht or more (not including the cost of land and working capital) are required to obtain a quality standard certificate from DEPA within 2 years following the start of operations. Projects producing enterprise software or digital content that fail to comply with this requirement will have their income tax exemption revoked.
- High value-added software, which the Board defines as software used for data management, cybersecurity, industrial software, or advanced-tech devices, are eligible for A1 privileges.
E-commerce
Semiconductors account for almost a quarter of Thailand’s entire electronics export, supplying materials for both local producers as well as those abroad. In order for the industry to stay competitive, players must continuously come up with innovative ways to optimize performance while maintaining cost-effectiveness. As a significant contributor to the Thai economy, the Board of Investment provides privileges to foreign investors seeking to participate in large-scale projects in this sector, particularly those engaged in significant R&D activities.
Conditions
Semiconductors account for almost a quarter of Thailand’s entire electronics export, supplying materials for both local producers as well as those abroad. In order for the industry to stay competitive, players must continuously come up with innovative ways to optimize performance while maintaining cost-effectiveness. As a significant contributor to the Thai economy, the Board of Investment provides privileges to foreign investors seeking to participate in large-scale projects in this sector, particularly those engaged in significant R&D activities.
Conditions
- Projects and ventures in this field are not eligible for merit-based incentives.
Digital Services
As part of its Thailand 4.0 initiative, the Thai government has begun rolling out initiatives to encourage investment into Thailand’s growing digital services sector to propel the country’s digital services industry forward. This has been done in tandem with the Board of Investment and the Ministry of Digital Economy and Society. The definition of digital services, according to the Board, includes designing digital architecture, establishing fintech services, software platforms, and business-to-business (B2B) or business-to-consumer (B2C) platforms. This can also extend to other digital content services such as gaming, animation, and movie-making.
Conditions
As part of its Thailand 4.0 initiative, the Thai government has begun rolling out initiatives to encourage investment into Thailand’s growing digital services sector to propel the country’s digital services industry forward. This has been done in tandem with the Board of Investment and the Ministry of Digital Economy and Society. The definition of digital services, according to the Board, includes designing digital architecture, establishing fintech services, software platforms, and business-to-business (B2B) or business-to-consumer (B2C) platforms. This can also extend to other digital content services such as gaming, animation, and movie-making.
Conditions
- Projects and ventures in this field are not eligible for merit-based incentives.