Nvidia set to make a major investment in Thailand, with CEO Jensen Huang expected to confirm plans this December. Thailand’s drive to become an AI tech hub gains momentum amid rising foreign investment and strategic government incentives.
In December, Thailand hopes for a major breakthrough investment with advanced AI chipmaker and technological player Nvidia expected to announce a significant investment in the kingdom. The investment is expected to be announced then when Chief Executive Officer Jensen Huang visits the kingdom. Nvidia is at the cutting edge of AI technology, from faster and more sophisticated chips to servers. This key investment will be seen as another step toward making Thailand an advanced technological hub and raising the value of the country’s output as its manufacturing base successfully modernises. In short, this is the type of investment Thailand urgently needs.
Minister of Commerce Pichai Naripthaphan revealed Tuesday that Thailand is close to securing another key international investment. The new investor is Nvidia, an advanced AI chipmaker and a major player on Wall Street.
This is exciting news and a strong vote of confidence. Certainly, it highlights the Thai government’s success in attracting inward investment. Notably, this development follows Google’s announcement on Monday, September 30, revealed by Prime Minister Paetongtarn Shinawatra.
Last November, former Prime Minister Srettha Thavisin also signed a Memorandum of Understanding (MOU) with Google. This investment is valued at $1 billion, or approximately ฿36 billion.
Former Prime Minister Srettha praised for U.S. outreach that strengthened tech investment ties with Thailand
Indeed, the former prime minister can take credit for this new wave of high-tech investment from American giants. During high-profile visits to the U.S., he helped connect with influential companies. His efforts to bring American companies to Thailand have been successful.
At length, Mr. Srettha also championed a green energy distribution system for eco-friendly data centres. In short, it allowed for direct purchase contracts off the grid. This is aimed at aligning data centre energy needs with sustainable technology.
Earlier this year, in May, Microsoft announced plans for its first Thai data centre. Under General Prayut Chan-o-cha’s administration, Amazon’s AWS also made a $5 billion investment to create a data hub over the next 15 years. This already provides high-quality server services to Southeast Asia. That pioneering data centre investment was announced in October 2022.
Meanwhile, Nvidia’s investment announcement is expected during an official visit to Thailand in December. Nvidia CEO Jensen Huang is likely to confirm the plans.
Nvidia’s investment solidifies Thailand as a Southeast Asian hub for AI tech and advanced manufacturing
Minister Pichai underlined Thailand’s drive to become a home for AI-powered data centres. Of course, this ambition aligns with the kingdom’s focus on advanced manufacturing.
Nvidia aims to establish Thailand as a central hub in Southeast Asia. At the same time, Foreign Direct Investment (FDI) has increased significantly this year, with a reported growth rate of 42%.
Significantly, Thai officials consider Nvidia’s investment a breakthrough. Nvidia currently produces its chips in Taiwan, in collaboration with Taiwan Semiconductor Manufacturing Co.
The company is also exploring Vietnam as a potential server-manufacturing base. Meanwhile, it has committed to new facilities in Indonesia and Malaysia.
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Nvidia, founded in the 1990s in Santa Clara, California, has grown into a major American tech success story.
In recent years, it has become a critical player and stock on Wall Street. Once focused on gaming GPUs, Nvidia has now moved into creating specialised AI hardware.
This transition has made Nvidia a leading name in high-performance computing. In brief, it has boosted its value presently to ranking among the world’s top tech companies.
At length, Thailand hopes Nvidia’s successful venture will spur further growth. The country is already well-known globally as a welcoming destination for Western nationals, particularly Americans. It has long been regarded as friendly for U.S. firms.
Thailand eyes Nvidia investment to attract support firms and build ecosystem around world-leading companies
Like the automotive industry, these investments often reach a critical mass point where related support firms and ecosystems emerge. This is Thailand’s hope.
Nvidia would be one of the most technologically advanced firms ever to invest in Thailand. Its entry would reinforce the government’s commitment to engaging with the Western world.
Moreover, Thailand will be on course to becoming a player on a more technologically advanced playing field. Thailand is also working to strengthen trade links with Western economies through new trade agreements. These include an anticipated EU free trade pact and improved U.S. market access.
Last week, Minister Pichai met with representatives from the European Free Trade Association (EFTA), which represents Norway, Switzerland, Liechtenstein, and Iceland.
Thailand builds ties with advanced Chinese firms across EV cars, green energy, and data centre sectors
Certainly, Thailand is also developing closer ties with advanced technology firms from China, particularly in EV cars, green energy developments, and data centres catering to Chinese companies.
Despite the challenges of pursuing both markets, there are also benefits and advantages, particularly within the EV car sector. Thailand is offering tax concessions and incentives, especially in the Eastern Economic Corridor (EEC) region.
Boosting the “S-curve” in advanced industries is vital for Thailand to raise its production value.
In the meantime, much of Thailand’s manufacturing base is experiencing a decline, making new investments essential. As with the auto industry, Nvidia’s investment could encourage local startups to provide support services. In this way, Thailand could build a strong ecosystem around leading global firms.
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