Nvidia Plans to Invest in Thailand, Commerce Minister Reveals

Nvidia Plans to Invest in Thailand, Commerce Minister Reveals

 

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Nvidia Corp. is set to announce significant investment plans for Thailand, joining tech giants Alphabet Inc. and Microsoft Corp. as Southeast Asia emerges as a key hub for building AI data centers and manufacturing their components.

According to Thailand's Commerce Minister Pichai Naripthaphan, Nvidia will reveal its investment details during CEO Jensen Huang’s visit to Bangkok in December. While Pichai declined to disclose specific figures or details, he mentioned that Nvidia’s move could attract further investments from related industries.

Securing Nvidia as an investor would be a major boost for Thailand, the region’s second-largest economy, which has been competing with neighboring countries to draw investments from major tech companies. Thailand has already secured multibillion-dollar investments from Amazon, Google, and Microsoft for developing data centers and cloud infrastructure in recent years.

Nvidia has not yet commented on the announcement. The Santa Clara-based company has previously committed to building AI infrastructure in Indonesia and Malaysia and is exploring opportunities in Vietnam. Nvidia’s chips are produced by Taiwan Semiconductor Manufacturing Co., while its AI servers are mainly assembled by Taiwanese manufacturers.

Historically a manufacturing hub for automobiles and electronics, Thailand is now striving to catch up with regional competitors like Malaysia and Singapore. It aims to drive growth, which had stagnated at under 2% during a decade of military-backed governance.

Pichai expressed optimism, suggesting Nvidia's interest, along with other tech companies and supply chain firms, will help Thailand recover "lost opportunities" from the past decade. He predicted investment applications will return to pre-2014 levels, before the military coup.

"The future of Thailand’s economy looks promising, and this is just the start," said Pichai, who took office in September under the new administration led by Prime Minister Paetongtarn Shinawatra.

Foreign investment pledges are already on the rise this year, particularly in data centers and printed circuit board manufacturing. In the first nine months of 2024, investment pledges surged 42% to 722.5 billion baht ($21.6 billion) compared to the previous year. Pichai anticipates total investment proposals, including from domestic companies, could reach as much as 1 trillion baht by the end of the year.

Trade Agreements in Progress

Pichai also highlighted Thailand’s efforts to finalize free trade agreements with the European Union and the United Arab Emirates by next year. An agreement with the European Free Trade Association is expected to be signed at the World Economic Forum in January, helping expedite the EU deal. Negotiations with the EU resumed last year after being suspended in 2014 due to the military coup.

The current administration is also working on a food security agreement with the UAE to increase exports of frozen chicken, rice, and ready-to-eat products. Pichai said Thailand aims to help the UAE maintain a commodity stockpile, with similar deals being explored with Qatar, Kuwait, and Oman.

"The Middle East conflict could intensify, and food security will be critical," Pichai said. "We’re offering to store food for countries and deliver it within 24 hours of purchase."

Thailand is a leading global producer and exporter of sugar, poultry, and rice, generating over $30 billion annually from agricultural and food exports. Pichai expects September's export figures, due next week, to show growth for the third consecutive month, with full-year exports surpassing the government’s target of a 1-2% rise, despite a high base from last year and a stronger baht. Exports for the first eight months of 2024 have already increased by 4.2%.

Source: BNN Bloomberg

Author: Patrick Lusted

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