Thailand advanced manufacturing and electronics growth

Thailand is experiencing growth in its high-tech manufacturing sectors, particularly in advanced materials and electronics. The Board of Investment (BOI) reported that between 2023 and the first half of 2026, 35 investment projects valued at over 23.5 billion baht were approved for advanced materials such as nanomaterials and specialized fibers. These investments aim to support industries including electric vehicles, batteries, and AI-related electronics.

Reflecting this trend, the Manufacturing Production Index (MPI) rose 4.4% year-on-year in August 2026, driven by global demand for communication equipment and electronic components. To better capture these structural shifts, the Office of Industrial Economics (OIE) updated its MPI methodology to include high-tech products like optical transceivers and processor power supplies. Consequently, the OIE raised its 2026 MPI growth forecast to between 2.75% and 3.75%.

While the electronics sector benefits from AI-related technology demand, other industries such as plastics, rubber, and steel have faced declines. Additionally, broader economic challenges persist, including rising living costs, public debt, and recent flooding.