Nvidia is set to announce new investments in Thailand this December, Thailand's Commerce Minister Pichai Naripthaphan told Bloomberg on Monday. Nvidia will join companies like Amazon, Alphabet, and Microsoft to expand into Southeast Asia, becoming a key region for AI data centers and component production as companies diversify beyond China.
Nvidia's chief executive, Jensen Huang, will reveal the company's plans for the country during a December visit to Bangkok. While specifics on the scale and nature of the investment have not been disclosed, Thailand's Commerce Minister, Pichai Naripthaphan, hinted that Nvidia's involvement could spark further investments in the country, especially in sectors related to AI and components manufacturing.
Southeast Asia, particularly Thailand, is gaining traction as a hub for building AI infrastructure and manufacturing components, such as motherboards. In general, high-tech companies invest in Thailand as part of their broader strategy to reduce reliance on China. In recent years, Thailand has secured multibillion-dollar investments from major players like Amazon, Google, and Microsoft to establish data centers and cloud infrastructure.
For Thailand, Nvidia's investment comes at a crucial time. The country is working to catch up with regional competitors like Malaysia and Singapore. According to Bloomberg, new investments in AI and tech infrastructure are expected to help drive economic growth, which has struggled to exceed 2% over the past decade due to political instability.
Foreign investment commitments have already significantly increased this year, particularly in the data center and printed circuit board production industries. According to official figures, these investment pledges rose by 42%, reaching 722.5 billion baht ($21.6 billion) in the first nine months of 2024 compared to last year.
Thailand's exports have been performing well in 2024, rising 4.2% in the first eight months of the year. Beyond the tech sector, Thailand is also working to expand its trade relationships, particularly in food exports. The government negotiates free trade agreements with the European Union and the United Arab Emirates. It plans to establish deals with other Middle Eastern countries like Qatar, Kuwait, and Oman. These agreements aim to boost exports of key products like frozen chicken and rice while supporting food security for the region.
