Global manufacturers of capacitors, magnets, and battery materials are increasingly choosing Thailand as a production base, with 35 advanced materials projects worth approximately $690 million (23.5 billion baht) filed with the Thailand Board of Investment (BOI) since 2023. The projects, submitted through the first half of 2026, signal a strategic shift for Southeast Asia's second-largest economy from downstream assembly toward high-value upstream materials that underpin future industries.
The investments cover 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. Surging demand for artificial intelligence, electric vehicles, and clean energy is pushing global suppliers to secure upstream capacity in the region.
The significance lies in the role these materials play in determining device performance. MLCCs are essential components in products ranging from smartphones to AI servers, and a single high-end server can use up to 30,000 of them. Lighter, more heat-resistant, and more conductive materials are critical to advancing AI computing and clean energy 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. Among the new projects, Taiwan's Fultech Fiber Glass produces glass fabric for printed circuit boards, including high-performance grades for AI servers, while Jones Tech manufactures 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 produces coated foils for lithium-ion batteries, Phinis Well makes neodymium magnets for EV motors, and Xinyuan Graphite supplies 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.
Mr. Narit Therdsteerasukdi, Secretary General of the BOI, said the advanced materials industry taking root in Thailand today is the foundation of tomorrow's supply chains in electronics, EVs, batteries, and clean energy. He emphasized that the BOI will continue building this investment base, strengthening upstream materials and components, and supporting research and development, technology, and workforce development to move Thailand from downstream to upstream production and establish it as the region's advanced materials hub.
The shift matters because it reduces reliance on imports and opens opportunities for Thai companies to join higher-value supply chains. As global demand for AI and electric vehicles accelerates, Thailand's ability to attract upstream materials investment will determine its competitiveness in the next generation of industrial production. The BOI, established in 1966, has spent six decades promoting high-value investment and driving the country's transition toward a sustainable, balanced new economy. For more information, visit https://www.boi.go.th/en/index/.
