Targeting EVs and data centres, the Thailand Board of Investment is investing US$350 million in a joint venture to establish the country’s first silicon carbide chip fabrication facility.
The Thailand Board of Investment (BOI) has recently announced its US$ 350 million backing for a joint venture between Hana Microelectronics and PTT to establish Thailand’s first silicon carbide (SiC) chip manufacturing facility.
This project will involve an initial investment of 11.5-billion-baht, equivalent to US$350 million, and is expected to begin production within two years. According to BOI, it targets the growing demand for power electronics in electric vehicles (EVs), data centres, and energy storage systems.
Operating under FT1 Corporation Ltd (FT1), this venture received BOI approval in February and was issued a promotional card last August. Narit Therdsteerasukdi, the BOI’s secretary general, led a delegation to Lamphun Province last week to assess the progress of the wafer fabrication investment project.
The construction of the factory is expected to take approximately two years, with production slated to kick off in the first quarter of 2027. FT1 will benefit from technology transfer from a leading South Korean chip manufacturer to produce 6-inch and 8-inch silicon carbide (SiC) wafers.
Narit stated that the BOI had been closely collaborating with the company to support the implementation of different project phases. He mentioned that the project was currently in the design stage for the factory, with preparations underway to begin construction in the Saha Group Industrial Park area.
He also elaborated on the rationale for selecting Thailand for this project, highlighting the country’s neutral status with low geopolitical risk, competitive costs, and potential for future production expansion.
Noting that Thailand offers high-quality infrastructure, stable electricity, potential for clean energy, and skilled personnel, Narit highlighted the government support measures and rapidly growing sectors in EVs, energy storage systems, and data centres.
He also stated that the investment project is expected to create jobs and promote the development of scientific and technological personnel through partnerships with Thai universities. It will also encourage local businesses to participate in the semiconductor supply chain.
As per other officials, the project is set to foster the formation of an advanced electronics ecosystem, attracting leading electronics manufacturers to invest in Thailand.
