Thailand's stock market is experiencing a significant uplift, positioning it as a surprise leader in Southeast Asia's AI sector. This surge is largely attributed to the influx of Taiwan's semiconductor supply chain, injecting new momentum into the Thai economy. Wealth Magazine Chairman Hsieh Chin-ho highlighted this "Taiwan value" spillover, noting that while the US is the "brain" and Taiwan the "heart" of the AI supply chain, Thailand and Malaysia have the opportunity to become the "hands and feet". This has led to the market capitalization of Delta Electronics Thailand soaring past 4 trillion baht (approximately NT$3.6 trillion), making it the largest company in Thailand and benefiting other Taiwanese firms operating in the country.
The Thai government is actively fostering this growth with its industrial policy. Prime Minister Anutin Charnvirakul announced an ambitious plan to produce "Made in Thailand" chips, aiming for the country to become ASEAN's advanced semiconductor industry hub by 2050. This initiative signifies Thailand's shift from traditional manufacturing sectors, which have been hit by global overcapacity, towards advanced industries. This strategic pivot aligns with Thailand's broader goal to escape the middle-income trap and become a high-income nation within 12 years, targeting AI, digital infrastructure, data centers, and smart automotive manufacturing as priority sectors.
Investment also remains central to Thailand's economic strategy, with policymakers aiming to increase the investment-to-GDP ratio to around 30%. The country also demonstrates strong investor confidence in AI, ranking sixth globally in the Global Wealth AI Optimism Index. Thai AI startup Amity recently raised $100 million in preparation for an IPO next year, considering listing venues in Thailand, Singapore, and Hong Kong, further underscoring the country's growing AI ecosystem. While the Thai market saw a recent correction, Krungsri Securities believes short-term negative factors are largely priced in, and an ongoing review of Indonesia's market status by MSCI could redirect foreign funds towards Thai equities, especially given robust domestic investment projects in data centers and AI-related industries.
