On 1 October 2026, Thailand's Prime Minister opened Infineon's plant in Samut Prakan. The project, worth more than THB 48 billion (about RMB 10.56 billion), is Infineon's third power module base worldwide and, once fully built, will be its largest back-end plant in the world. Alongside the opening, Thailand's semiconductor board approved a national strategy on 24 September that aims to attract at least THB 500 billion of investment within five years.
1. Scale and Phases
Infineon's investment exceeds THB 48,000 million (THB 48 billion, about RMB 10.56 billion) in Samut Prakan, covering power module production, integrated circuit testing, and a wafer and semiconductor R&D centre.
The project is planned in five phases (Modules A to E), with Phase 1 (Module A) now open. When complete it will be Infineon's largest back-end plant in the world, with 150,000 square metres of cleanroom, about twice its current largest plant; Phase 1 has 30,000 square metres of production cleanroom. Each phase will employ about 1,000 people, more than 5,000 in total.
It is Infineon's third power module base after Germany and China, and its first plant combining front-end wafer testing with back-end power module and IC production on one site.
The opening on 1 October 2026 was presided over by Prime Minister Anutin Charnvirakul, attended by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, German Ambassador to Thailand Michael Reiffenstuel and Infineon Chief Operations Officer Alexander Gorski.
2. Localisation Requirements in the BOI Promotion Conditions
In its 25 September press release the BOI disclosed the project's promotion conditions. For understanding the BOI's current approval approach, they are more instructive than the investment amount itself:
Develop more than 600 science and technology personnel (400+ in production engineering, 200+ in R&D)
Send about 130 Thai employees abroad for specialised training
With Thai universities, develop 60+ semiconductor courses, train 1,100+ undergraduates, run 680 projects and 18+ joint R&D projects
Develop at least 14 local Thai suppliers
Raise the local materials ratio to 60%
Spend at least THB 2.8 billion (about RMB 616 million) on R&D
These conditions match the shift in evaluation criteria the BOI announced on 11 September 2026, under which local value added, the participation of Thai SMEs in supply chains, high-skilled job creation, R&D spending and technology transfer become strategic indicators. In other words, a large investment alone is no longer enough for approval; the ability to lift the supply chain is now measured.
3. Targets of the National Semiconductor Strategy
On 24 September 2026 Thailand's semiconductor board approved the national strategy "Chip Made in Thailand", with targets including:
Attract at least THB 500 billion of investment within five years (about RMB 110 billion)
Reach a cumulative THB 2.5 trillion by B.E. 2593 (2050) (about RMB 550 billion)
Industry revenue of more than THB 5 trillion a year
Create at least 230,000 new high-skilled jobs
On the current state of the industry, Thailand has about 900 semiconductor and electronics companies employing more than 336,000 people; related exports in the first half of B.E. 2569 (2026) were about THB 1.6 trillion, roughly 26% of national exports.
BOI application data show that from B.E. 2566 to June 2569 (2023 to June 2026) there were 879 advanced semiconductor and electronics projects worth THB 909 billion, including 224 printed circuit board (PCB) projects worth THB 331 billion.
4. Two Implications for Chinese Companies
The first is supply chain opportunity. Infineon's BOI conditions require developing at least 14 Thai local suppliers and raising local materials to 60%. In practice, the beneficiaries of such requirements are often foreign manufacturers already operating plants in Thailand with certification capability, including Chinese companies. But to enter such supply chains, a Thai legal entity, quality system certification and financial transparency are prerequisites.
The second is the shift in BOI approval priorities. Infineon's list of conditions can be read as the BOI's current model answer: talent development, university cooperation, local supplier development, R&D spending and technology transfer. Under the new criteria, a Chinese company whose BOI business plan shows only investment and capacity, without concrete plans in these areas, will be less competitive.
Key Takeaways
Infineon's Samut Prakan project is worth more than THB 48 billion (about RMB 10.56 billion), in five phases; once complete it will be its largest back-end plant in the world (150,000 m² of cleanroom).
BOI conditions include quantified localisation: at least 14 local suppliers, local materials at 60%, R&D of at least THB 2.8 billion, and 600+ technical staff developed.
National semiconductor strategy (approved 24 September 2026): at least THB 500 billion of investment in five years, THB 2.5 trillion cumulative by 2050, and at least 230,000 new high-skilled jobs.
Industry today: about 900 semiconductor and electronics companies, 336,000+ jobs; H1 2026 exports of about THB 1.6 trillion, about 26% of national exports.
BOI applications (2023 to June 2026): 879 advanced semiconductor and electronics projects worth THB 909 billion, including 224 PCB projects worth THB 331 billion.
Z&X Tip
The most practical value of this news for Chinese companies is that it lays out the BOI's current evaluation preferences: numbers of people trained, university cooperation, local supplier development, R&D spending and technology transfer are all concrete items that can be written into a business plan. Companies preparing a BOI application should check their materials against Infineon's list and see whether these items have quantifiable plans. In the five-step process of Z&X BOI Investment Promotion Application, the "consultation and assessment" and "document preparation" steps cover the business plan and financial projections; pre-investment assessment of the entity and shareholding structure can be handled by Company Registration & Approval. BOI approval is subject to the Board's decision.
Sources
บีโอไอดึง "อินฟินีออน" ลงทุน 4.8 หมื่นล้าน ปักหมุดรับยุทธศาสตร์ "ชิปเมดอินไทยแลนด์" (PR167/2569) | Thailand Board of Investment (BOI) | 2026-09-25 | https://www.boi.go.th/index.php?page=press_releases_detail&topic_id=139440&_module=news&from_page=press_releases2
นายกฯ อนุทิน เปิดโรงงาน "อินฟินีออน" รุกตั้งฐานเซมิคอนดักเตอร์แห่งใหม่ในไทย (PR170/2569) | Thailand Board of Investment (BOI) | 2026-10-01 | https://www.boi.go.th/index.php?page=press_releases_detail&topic_id=139469&_module=news&from_page=press_releases2
บอร์ดเซมิคอนดักเตอร์ เคาะยุทธศาสตร์ชาติ ปักธง "ชิปเมดอินไทยแลนด์" | Thailand Board of Investment (BOI) | 2026-09-24 | https://www.boi.go.th/index.php?page=press_releases_detail&topic_id=139424&_module=news&from_page=press_releases2
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