Global manufacturers of critical components for artificial intelligence servers and electric vehicles are increasingly turning to Thailand, 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 production.
The investments cover a wide 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 materials are essential for the performance and efficiency of AI computing, electric vehicles, and clean energy systems. For instance, a single high-end AI server can contain up to 30,000 MLCCs, highlighting the scale of demand.
Thailand is already a production base for leading component makers such as 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. The new projects build on this foundation. Taiwan’s Fultech Fiber Glass is producing glass fabric for printed circuit boards, including high-performance grades for AI servers. Jones Tech manufactures synthetic and natural graphite films that dissipate heat from electronic devices. In the EV and clean energy space, BGN Thai is making coated foils for lithium-ion batteries, Phinis Well is producing neodymium magnets for EV motors, and Xinyuan Graphite is developing bipolar plates for hydrogen fuel cells.
CoorsTek Advanced Materials, a subsidiary of US-based CoorsTek, has invested in producing ceramics for automotive pressure sensors and silicon nitride balls for hybrid bearings used in EVs and wind turbines. Golden Egret Cemented Carbide is making tungsten carbide powders for precision cutting tools, reinforcing Thailand’s high-precision manufacturing base.
Mr. Narit Therdsteerasukdi, Secretary General of the BOI, emphasized the strategic importance of these investments. “The world is moving toward products that are smaller and lighter, yet stronger and more efficient,” he said. “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.” He added that the advanced materials industry taking root today is the foundation of tomorrow’s supply chains in electronics, EVs, batteries, and clean energy, and that the BOI will continue to support R&D, technology, and workforce development to make Thailand the region’s advanced materials hub.
The implications of this investment wave are significant. By moving into upstream production, Thailand can capture more value from global supply chains, reduce its dependence on imported components, and create higher-skilled jobs. The projects also strengthen the country’s position as a reliable supplier for industries that are central to the global energy transition and digital economy. As demand for AI and EVs continues to surge, Thailand’s advanced materials base is poised to play a critical role in sustaining global supply chains. The BOI’s efforts are detailed on its official website.
