Thailand cannot rely solely on foreign investment if it wants to develop the semiconductor industry as a new engine to drive long-term economic growth, says the Federation of Thai Industries (FTI).
Pimjai Leeissaranukul, chairwoman of the FTI, welcomed the recent establishment of the National Semiconductor Policy Committee to steer technological advancement, but noted various measures are needed to develop the country into a semiconductor manufacturing base.
The committee, chaired by Prime Minister Anutin Charnvirakul, set a target to draw 2.5 trillion baht in investment to the chipmaking industry by 2050.
"We need both investment and technological know-how," said Mrs Pimjai.
Foreign investors' pledges to spend several millions of baht developing semiconductor production facilities must be done in tandem with human resource development.
"We need to build chip designers," she said.
The committee said it intends to develop more than 230,000 highly-skilled workers to serve the semiconductor industry, paving the way for economic development, creating high-quality jobs, raising public income and reinforcing the country's long-term competitiveness.
Mrs Pimjai said Thailand has the potential to advance in semiconductor technology development. Some FTI members are semiconductor manufacturers producing chips for their companies or to sell to other brands.
The FTI reported on Wednesday high-tech products made by foreign companies in Thailand are in high demand, helping to strengthen the export sector.
However, the Thai Industries Sentiment Index (TISI) in May decreased to 84.7 points, the lowest level in 48 months, down from 85.3 in April.
The drop was attributed to local non-tech industries' struggle to sell their products domestically amid slowing demand and tough competition from imports.
"Consumers bought more imported electrical appliances, clothes and furniture because they are cheap," said Panitarn Pavarolavidya, secretary-general of the FTI.
"This is not good as it puts pressure on the manufacturing sector."
He remained optimistic about improving the index in June, following a peace agreement between the US and Iran to end the months-long conflict in the Middle East.
The May TISI was based on a survey of 1,347 entrepreneurs across 48 industries under the FTI.
Topping the respondents' rising concerns were the sluggish domestic economy, which gained the majority of votes, followed by difficulties gaining access to loans.
During the first quarter of this year, loan grants for small and medium-sized enterprises contracted by 4% year-on-year, reflecting banks' prolonged cautions about lending, according to the FTI.
