In the heart of Thailand’s ancient capital of Ayutthaya, just 60 kilometers north of Bangkok, China’s Victory Giant Technology is ramping up operations at a sprawling new factory. This facility, set to begin production by late 2025, represents a pivotal shift in the global supply chain for printed circuit boards (PCBs), the unsung heroes underpinning artificial intelligence hardware. As AI demands soar, Thailand is quietly positioning itself as a manufacturing powerhouse, attracting billions in investments from firms diversifying away from China and Taiwan amid geopolitical tensions.

Victory Giant’s move is part of a broader influx: nearly 60 companies have established or expanded PCB operations in Thailand over the past few years, drawn by generous incentives from the Board of Investment, including tax breaks and streamlined regulations. These boards, essential for servers, data centers, and AI accelerators, are seeing unprecedented demand, with global PCB output projected to hit $100 billion by 2030, according to industry analysts.

Geopolitical Shifts Driving Diversification

The push stems from U.S.-China trade frictions and supply-chain vulnerabilities exposed by the pandemic. Taiwanese giants like Delta Electronics and Japan’s Ibiden are among those investing heavily, with Delta committing over $500 million to a new plant in Chonburi province. Recent reports from Nation Thailand highlight how Thailand’s strategic location in Southeast Asia, coupled with its skilled workforce and lower costs, makes it an ideal alternative hub.

This diversification is critical for AI infrastructure. PCBs form the backbone of high-performance computing systems used in training models like those from OpenAI or Google. Without them, the AI boom grinds to a halt. Insiders note that Thailand’s factories are focusing on high-layer count boards, capable of handling the dense interconnections required for advanced GPUs.

Investment Boom and Local Economic Impact

The investment wave is transforming Thailand’s economy. In 2024 alone, PCB-related projects approved by the Board of Investment totaled more than 100 billion baht ($3 billion), per government data. Companies like China’s Sihui Fuji, which broke ground on a Rayong facility in 2023 as detailed in Yicai Global, aim for mass production by mid-2025, targeting automotive and consumer electronics markets intertwined with AI.

Locally, this surge is creating thousands of jobs and fostering technology transfer. Ayutthaya’s industrial parks are buzzing with activity, where workers assemble multilayer boards using automated lines imported from Japan and Germany. However, challenges loom: skilled labor shortages and rising energy costs could temper growth, as echoed in discussions on X, where industry observers praise Thailand’s momentum but warn of infrastructure strains.

Technological Advancements in PCB Manufacturing

Innovation is key to Thailand’s edge. Factories are integrating AI-driven automation for precision etching and quality control, reducing defects by up to 30%. A recent conference at Thailand Electronics Circuit Asia 2025, as covered by THECA’s official site, showcased how 3D printing and AI optimization are revolutionizing PCB design, enabling faster prototyping for AI hardware.

Dynamic Holding, a Taiwanese firm, plans volume production of AI server motherboards at its Thailand plant by Q4 2025, with AI-related revenue expected to reach 20% by 2026, according to Digitimes. This aligns with global trends where AI integration in manufacturing boosts efficiency, as explored in a NEPCON Thailand blog on additive production.

Future Prospects and Global Implications

Thailand’s ambition is to become the largest non-China PCB producer, potentially capturing 10% of the global market by 2030. Posts on X from users like Nikkei Asia reporters underscore this “less-glamorous” niche’s importance, noting how it underpins the AI revolution without the fanfare of chip fabs.

Yet, sustainability concerns arise. The industry’s water and chemical usage demands eco-friendly practices, with some firms adopting green manufacturing standards. For insiders, Thailand’s rise signals a resilient supply chain, but success hinges on navigating trade policies and talent development. As one executive told Nikkei Asia, “PCBs may not be sexy, but they’re the foundation of tomorrow’s tech.”

Challenges and Strategic Responses

Competition from Vietnam and Malaysia is intensifying, prompting Thailand to enhance incentives. The government is investing in vocational training for AI and electronics, aiming to upskill 50,000 workers by 2027. Recent X posts from Thai officials highlight partnerships with firms like Taiwan’s Powerchip, echoing broader semiconductor shifts.

Ultimately, this PCB boom could elevate Thailand’s role in the global tech ecosystem, supporting everything from autonomous vehicles to cloud computing. With AI’s insatiable hunger for hardware, Thailand’s factories are poised to power the next wave of innovation, proving that even unglamorous components can drive economic transformation.