SCB EIC analyzes the 'AI Supercycle' trend, urges Thailand to accelerate transition into an ASEAN electronics manufacturing hub
The Economic Intelligence Center (EIC) at Siam Commercial Bank (SCB) has analyzed the 'AI Supercycle' phenomenon, a period during which artificial intelligence technology is growing rapidly and impacting industries worldwide. This is particularly evident in the electronics industry, which is experiencing a K-shaped recovery, meaning some segments are performing very well while others continue to face challenges.
Analysis shows that the global electronics industry is entering a new era focused on producing components for advanced technologies to support the continuously rising demand for AI across all sectors. As a key player in the global electronics supply chain, Thailand must accelerate its adaptation to maintain competitiveness and attract foreign investment.
Experts from SCB EIC advise that Thailand should select a competitive position where it holds a 'handicap' or comparative advantage. Rather than competing in every area, the country should focus on producing components or services in which it possesses expertise and ready infrastructure, aiming to elevate domestic industry to become a major manufacturing hub within the ASEAN region.
This adaptation represents a significant opportunity for Thailand to transition from a general contract manufacturer to an integral part of a higher-value global technology chain. If the public and private sectors collaborate to develop workforce skills and technology in alignment with AI market demands, it will help the Thai economy grow sustainably in the long term amidst global technological shifts.