Thailand Application-Specific Integrated Circuits (ASIC) Market - Strategic Insights and Forecasts (2025-2030)

Description

Thailand Application-Specific Integrated Circuits (ASIC) Market is anticipated to expand at a high CAGR over the forecast period.

Thailand Application-Specific Integrated Circuits (ASIC) Market Key Highlights

• Electrification and EV Integration Drive Automotive ASIC Demand: The Thai government's robust incentives and policies promoting Electric Vehicle (EV) adoption directly catalyze a significant increase in demand for automotive-grade ASICs. These components are essential for complex applications such as Battery Management Systems (BMS), power conversion, and electric drivetrain control, demanding highly specialized, power-efficient chips.
• Digital Transformation Propels Industrial & IoT Segment: The national push toward "Thailand 4.0," which emphasizes automation and digitalization, fundamentally increases the complexity and volume of Internet of Things (IoT) devices in manufacturing. This necessitates custom, low-power ASICs to handle on-site data processing at the edge, propelling demand beyond standard integrated circuits.
• 5G Rollout Spurs Networking & Telecommunications ASIC Procurement: Substantial government and private sector investment in 5G infrastructure expansion drives the need for high-speed, high-efficiency ASICs. These chips are critical for base station equipment, network switching, and next-generation communication devices that require low-latency, specialized signal processing capabilities.
• Foreign Direct Investment (FDI) Focuses on High-Value Electronics: Approved investment applications for the electronics and electrical appliances industry in 2023 saw a dramatic surge, with a vast majority directed toward smart electronics, including semiconductors and integrated circuits. This FDI inflow validates Thailand's role as a high-value manufacturing hub, ensuring sustained local demand for advanced ASIC production and assembly.

The Thai Application-Specific Integrated Circuits market operates as a vital component of the nation's advanced electronics and electrical appliance manufacturing sector, a segment overwhelmingly focused on export, accounting for a significant portion of the country's goods export value. The market's current trajectory is directly shaped by Thailand's strategic pivot toward high-value, digital-centric industries, moving beyond traditional low-cost assembly. This shift inherently favors ASICs over general-purpose integrated circuits (ICs) due to the latter's limitations in achieving the required performance, power efficiency, and small form factor necessary for next-generation products like smart factory equipment, advanced automotive systems, and high-speed networking gear.

Thailand Application-Specific Integrated Circuits (ASIC) Market Analysis

• Growth Drivers

The key growth drivers are the national digital transformation and the electrification of the automotive sector, both creating a hard imperative for specialized silicon. The rapid expansion of 5G infrastructure, heavily supported by government initiatives, directly increases demand for high-performance ASICs essential for baseband processing and radio frequency front-ends in telecom equipment. Simultaneously, the aggressive promotion of Electric Vehicles (EVs) by the Thai government dictates a transition from standard microcontrollers to power-efficient, robust ASICs for critical functions like intelligent battery management and power inverter control, where tailored silicon delivers unmatched efficiency and reliability. The convergence of Industry 4.0 technologies drives the integration of IoT devices into manufacturing, necessitating custom ASICs for edge computing and sensor fusion, thereby creating direct, high-volume demand for specialized components.

• Challenges and Opportunities

The market faces structural headwinds primarily related to the domestic skills gap and reliance on imported upstream technologies. Thailand lacks domestic sources for the key raw materials and the highly capital-intensive R&D for cutting-edge semiconductor process technology, creating dependency and supply chain volatility. However, this challenge births significant opportunities: the expansion of the Electric Vehicle ecosystem presents a chance for local firms to specialize in power management ASICs and charging solutions, directly increasing local demand for design and integration services. Furthermore, the substantial government support for digital transformation provides an opportunity to drive demand for security and Artificial Intelligence (AI) ASICs tailored for high-growth sectors like data centers and cloud computing, shifting the focus from mere assembly to value-added design.

• Raw Material and Pricing Analysis

As Application-Specific Integrated Circuits constitute a physical product, this analysis of the raw material landscape is essential. The ASIC production value chain relies on the supply of highly purified silicon wafers, specialized process chemicals, and various rare earth metals for metallization and doping. Thailand's semiconductor segment focuses heavily on back-end processes, including assembly, testing, and packaging (ATP). Consequently, the nation is largely dependent on global supply chains for the upstream, high-cost raw materials and processed silicon wafers. Pricing dynamics are thus dictated by global commodity price fluctuations and the capacity utilization of leading global front-end foundries. Any disruption to these global sources, particularly in wafer fabrication hubs, results in higher input costs for the Thai back-end manufacturers, ultimately increasing the final component price and potentially constraining local production output.

• Supply Chain Analysis

The Thai ASIC supply chain is characterized by a high degree of global segmentation, where the country plays a critical role in the final stages. Key production hubs for front-end fabrication (wafer manufacturing) reside predominantly in East Asia, which creates a critical dependency for Thai manufacturers. Logistical complexities stem from the intercontinental transport of high-value, highly sensitive, and often fragile silicon wafers and dies, demanding specialized logistics and minimal transit times. Thailand's strength lies in its established back-end ecosystem—assembly, testing, and packaging (ATP)—where local subsidiaries of global technology firms perform the final integration before the ASICs are shipped to local or global original equipment manufacturers (OEMs). This structure exposes the market to geopolitical risks and trade tensions that impact the cross-border flow of intermediate components, directly affecting local production schedules and inventory levels.

Government Regulations

Key government initiatives have a direct, measurable impact on the demand side of the ASIC market in Thailand by shaping the local business environment and incentivizing technology adoption.

In-Depth Segment Analysis

• By Application: Automotive

The Automotive application segment is rapidly evolving from a mechanical assembly base to an advanced electronics hub, generating a non-linear increase in ASIC demand. The Thai government's ambitious electric vehicle (EV) manufacturing and adoption targets serve as the single most critical growth driver. EVs inherently require sophisticated power electronics that rely on high-reliability, full-custom or semi-custom ASICs for functions that cannot be efficiently handled by standard ICs. Specifically, Battery Management Systems (BMS) in EVs demand ASICs for cell balancing, precise current/voltage monitoring, and thermal management. This critical safety and performance-related functionality necessitates tailored chips that deliver high thermal dissipation and functional safety compliance (e.g., ISO 26262), creating a specific and sustained need for robust automotive-grade ASICs. Furthermore, the incorporation of Advanced Driver Assistance Systems (ADAS) in newer vehicles, whether manufactured locally or imported, drives demand for high-speed signal processing and sensor fusion ASICs.

• By End-User: Data Centers & Cloud Computing

The Data Centers and Cloud Computing segment is a powerful catalyst for high-performance ASIC demand, driven by the increasing digital traffic from e-commerce, streaming services, and the national push for digital services. The shift toward Edge Computing to reduce latency for IoT applications and industrial automation necessitates distributed data processing capabilities. This architecture drives strong demand for specialized Advanced Nodes ASICs designed for extreme performance and power efficiency. These chips, particularly for custom AI accelerators and high-throughput networking functions, are essential for handling the massive data loads generated by 5G and industrial IoT. Cloud service providers and large enterprises building new data centers in Thailand require high-core-count, custom-designed ASICs for server processors, network interface cards (NICs), and high-speed switches. The imperative for lower total cost of ownership (TCO) and better workload-specific performance makes custom ASICs, especially Full-Custom ASICs, a preferred solution over off-the-shelf components, directly fueling demand in this segment.

Competitive Environment and Analysis

The competitive landscape in the Thai ASIC market is dominated by multinational semiconductor giants leveraging their local assembly, testing, and packaging (ATP) facilities, alongside established local power electronics firms. The competition is primarily focused on Automotive and Industrial & IoT segments, where specialized ASIC design expertise and high-quality, high-reliability manufacturing capabilities are paramount. The local presence of these major players mitigates supply chain risk for Thai-based Original Equipment Manufacturers (OEMs) and attracts further investment.

• Infineon Technologies AG: Infineon’s strategic positioning in Thailand is concentrated in power semiconductors and modules, which are essential for the high-growth EV and Industrial segments. Their official press releases highlight a focus on driving decarbonization and digitalization, directly aligning with the demand for power management and control ASICs. Their core products, such as their family of automotive microcontrollers and power management ICs, directly address the needs of Thailand's expanding EV manufacturing base, providing specialized, high-reliability silicon for mission-critical automotive and industrial applications.

• Delta Electronics Public Company Limited: As a locally listed power management and smart green solutions provider, Delta Electronics holds a significant position, particularly in the domestic market. While they primarily focus on power management solutions, including power components and industrial automation, their expertise in data center solutions and EV charging infrastructure creates an inherent demand for custom ASICs in their end products. Their positioning as a key player in the national digital infrastructure drive ensures a steady internal and local demand for power electronics and related control ASICs.

Recent Market Developments

• January 2025: Infineon Technologies AG officially commenced construction on a new semiconductor backend production facility south of Bangkok. This capacity addition is explicitly aimed at optimizing and further diversifying the company’s production layout to meet the growing global demand for power modules, which rely heavily on specialized ASIC and power semiconductor assembly. This investment, supported by the Thailand Board of Investment (BOI), directly strengthens Thailand's role in the global ASIC supply chain.

• February 2025: Infineon Technologies Asia Pacific Pte Ltd and the government agency TSRI signed a Memorandum of Understanding (MoU) to collaborate on driving growth and innovation in Thailand, with a focus on Artificial Intelligence (AI) and the Internet of Things (IoT). This strategic partnership aims to develop a secure and scalable AIoT platform, which will inherently increase demand for and foster the local design of custom AIoT ASICs for edge computing applications, directly linking global technology with national innovation goals.

Thailand Application-Specific Integrated Circuits (ASIC) Market Segmentation

• BY PROCESS TECHNOLOGY
  • Advanced Nodes
    • 3 nm and below
  • Leading-Edge Nodes
    • 5 nm
    • 7 nm
  • Mid-Range Nodes
    • 10 nm
    • 12 nm
    • 14 nm
    • 16 nm
  • Mature Nodes
    • 22 nm and above
• BY PRODUCT TYPE
  • Full-Custom ASIC
  • Semi-Custom ASIC
    • Standard Cell-Based ASIC
    • Gate-Array Based ASIC
  • Programmable ASIC
  • Others
• BY APPLICATION
  • Consumer Electronics
  • Automotive
  • Networking & Telecommunications
  • Data Centers & Cloud Computing
  • Healthcare
  • Industrial & IoT
  • Defense & Aerospace
  • Others

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK

5. THAILAND APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY PROCESS TECHNOLOGY

5.1. Introduction

5.2. Advanced Nodes

5.2.1. 3 nm and below

5.3. Leading-Edge Nodes

5.3.1. 5 nm

5.3.2. 7 nm

5.4. Mid-Range Nodes

5.4.1. 10 nm

5.4.2. 12 nm

5.4.3. 14 nm

5.4.4. 16 nm

5.5. Mature Nodes

5.5.1. 22 nm and above

6. THAILAND APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY PRODUCT TYPE

6.1. Introduction

6.2. Full-Custom ASIC

6.3. Semi-Custom ASIC

6.3.1. Standard Cell-Based ASIC

6.3.2. Gate-Array Based ASIC

6.4. Programmable ASIC

6.5. Others

7. THAILAND APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY APPLICATION

7.1. Introduction

7.2. Consumer Electronics

7.3. Automotive

7.4. Networking & Telecommunications

7.5. Data Centers & Cloud Computing

7.6. Healthcare

7.7. Industrial & IoT

7.8. Defense & Aerospace

7.9. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Infineon Technologies AG

9.2. Sony Semiconductor Solutions Corporation

9.3. Toshiba Semiconductor Co., Ltd.

9.4. Delta Electronics Public Company Limited

9.5. Texas Instruments Incorporated

9.6. Qualcomm Technologies, Inc.

9.7. Western Digital Corporation

10. APPENDIX

10.1. Currency

10.2. Assumptions

10.3. Base and Forecast Years Timeline

10.4. Key benefits for the stakeholders

10.5. Research Methodology 

10.6. Abbreviations 

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Infineon Technologies AG

Sony Semiconductor Solutions Corporation

Toshiba Semiconductor Co., Ltd.

Delta Electronics Public Company Limited

Texas Instruments Incorporated

Qualcomm Technologies, Inc.

Western Digital Corporation

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