German semiconductor manufacturer Infineon Technologies is developing its first factory in Thailand to meet the growing demand in the electric vehicle and data centre industries, as well as businesses that require additional equipment for clean energy management.

The plant is set to begin operations in 2026, as confirmed by Narit Therdsteerasukdi, secretary-general of the Board of Investment (BoI).

"The business expansion highlights the importance of a strong and reliable partnership between Infineon and the Thai government and reflects the mutual confidence in Thailand's business environment and its growth potential," he stated.

Narit made these remarks while presiding over Infineon's ground-breaking ceremony at a construction site in Samut Prakan, following the company's meeting with Prime Minister Paetongtarn Shinawatra on 13th January.

Thailand is actively supporting the development of the semiconductor industry.

In December of the previous year, the newly established National Semiconductor and Advanced Electronics Policy Committee, also known as the Semiconductor Board, approved a framework to develop a skilled workforce in preparation for a new wave of foreign direct investment in the sector, which could contribute at least THB 500 billion (US$ 15 billion) to the country's economy by 2029.

Infineon is expected to play a key role in developing a semiconductor ecosystem in Thailand, covering essential components and materials in the supply chain, while also supporting the development of a skilled workforce in the field.

Through close collaboration with universities and local businesses, Infineon aims to cultivate a talent pool of highly skilled engineers with expertise in advanced semiconductors, according to Mr Narit.

A comprehensive training and education programme to enhance competencies in artificial intelligence, digitalisation, and automation has been established.

The first group of Thai engineers successfully completed this training programme at other Infineon sites.

In line with its commitment to achieving climate neutrality by 2030, Infineon has incorporated decarbonisation efforts into the design and construction of its new production facilities.

"This investment is a key step in our strategy to further diversify our manufacturing footprint and optimise it in terms of costs, while aligning with the expansion of our frontend capacities," said Rutger Wijburg, chief operations officer at Infineon.