FoxSemicon’s Thailand expansion

Building a strategic hub for the future of semiconductor manufacturing.

By Grace Lee

Grace Lee, VP/CIO at Foxsemicon Integrated Tech, explains how Foxsemicon’s major investment in Thailand marks an important step in the evolution of the global semiconductor equipment supply chain. She outlines the strategic thinking behind its Thailand expansion, the role of advanced manufacturing, automation and sustainability, and how the company is helping strengthen regional supply chain resilience while supporting the next generation of semiconductor technologies and talent.

The global semiconductor industry is undergoing profound transformation. Surging demand from artificial intelligence (AI), high-performance computing (HPC), advanced packaging technologies, and next-generation electronics is driving unprecedented investment across the semiconductor ecosystem. At the same time, geopolitical uncertainty, supply chain disruptions, and growing concerns around resilience have prompted manufacturers to rethink their global production strategies.

Against this backdrop, FoxSemicon Integrated Technology has made one of the most significant semiconductor investments in Thailand in recent years. Following an investment exceeding 10.5 billion baht in 2024 and the inauguration of a major manufacturing facility in Chonburi in 2025, the company is positioning Thailand as a critical pillar of its global manufacturing network.

In an extensive interview, FoxSemicon outlined its vision for Thailand, discussed the future of semiconductor equipment manufacturing, and shared its perspective on automation, advanced packaging, talent development, and supply chain resilience. The message was clear: Thailand is not simply an additional production location. It is becoming a strategic manufacturing hub with a key role to play in the future of the global semiconductor industry.

Why thailand?
Before committing to its major investment, FoxSemicon conducted a comprehensive assessment of potential manufacturing locations across Southeast Asia. After evaluating multiple countries, Thailand emerged as the preferred destination for three primary reasons.

First, Thailand offers a combination of strong infrastructure, political and economic stability, and government support for high-technology industries. For a company making long-term investments in advanced manufacturing, these factors provide confidence that operations can be scaled sustainably over many years.

Second, Thailand’s geographic position at the heart of Southeast Asia offers considerable logistical advantages. With access to regional transportation networks and proximity to key Asian manufacturing centres, Thailand enables more efficient supply chain coordination and facilitates faster responses to customer requirements worldwide.

The third factor relates specifically to FoxSemicon’s manufacturing locations. Its Rayong facility is situated within Amata City Rayong Industrial Estate, one of Thailand’s most established industrial zones. The estate hosts a large concentration of international manufacturers, particularly Japanese companies, creating a mature industrial ecosystem supported by experienced engineering talent, reliable suppliers, and strong manufacturing expertise.

According to FoxSemicon, these advantages collectively make Thailand an ideal location for long-term expansion. The investment is not merely about adding production capacity. It represents a strategic move designed to strengthen the company’s global manufacturing footprint, improve supply chain resilience, and support future growth in semiconductor equipment manufacturing.

Chonburi: A new mega site for global operations
The inauguration of FoxSemicon’s Chonburi facility marked a major milestone in the company’s global strategy.

The plant serves as a “mega site” within FoxSemicon’s worldwide manufacturing network, complementing operations in Taiwan, China, and the United States. More importantly, it introduces a vertically integrated manufacturing model that differentiates the company from many competitors.

Within a typical semiconductor equipment supply chain, critical manufacturing processes such as precision machining, sheet metal fabrication, surface treatment, assembly, integration, and quality inspection are often distributed among multiple suppliers and locations. FoxSemicon’s Chonburi facility brings many of these processes together under one roof.

This level of integration delivers several benefits. It enhances operational efficiency, reduces production lead times, improves coordination, and supports more consistent quality control. It also gives FoxSemicon greater flexibility when responding to changing customer requirements and fluctuations in global demand.

The Chonburi facility also plays a crucial role in supporting product development activities. FoxSemicon’s presence in Silicon Valley allows engineers to work closely with customers during new product introduction (NPI) phases. Once products are certified and ready for volume production, manufacturing can be transferred efficiently to Thailand, where the company can scale production quickly and cost-effectively.

This combination of early-stage collaboration in the United States and high-volume manufacturing in Thailand creates what FoxSemicon describes as a “one-stop solution” extending from product development through to global production.

Resilience in an uncertain world
Few industries have experienced the impact of geopolitical tensions and supply chain disruption more acutely than semiconductors.

FoxSemicon believes that success in today’s market depends on far more than cost efficiency alone. Instead, companies must build manufacturing networks capable of withstanding uncertainty while maintaining continuity of supply.

The company’s response has been to strengthen its global footprint through geographically diversified manufacturing operations and vertically integrated production capabilities. Rather than concentrating manufacturing in a limited number of locations, FoxSemicon has established facilities across multiple regions to reduce operational risk and enhance business continuity.

This approach also extends to sourcing strategies. The company is actively working to diversify its supplier base, with Thailand playing an increasingly important role.

Rather than simply importing materials and components, FoxSemicon is investing in the development of local suppliers. By helping Thai companies improve manufacturing processes, quality systems, and engineering capabilities, the company hopes to integrate more local firms into the global semiconductor equipment supply chain.

The ultimate objective is not merely diversification for its own sake. FoxSemicon aims to build an agile and resilient manufacturing ecosystem capable of supporting customers through future market volatility and technological change.

Supporting advanced semiconductor manufacturing
Although confidentiality agreements prevent FoxSemicon from naming specific products manufactured in Thailand, the company operates across some of the most advanced segments of semiconductor equipment manufacturing.

Its expertise spans deposition technologies including physical vapour deposition (PVD), chemical vapour deposition (CVD), and atomic layer deposition (ALD), along with etch systems, metrology equipment, and refurbishment services.

The facilities in Thailand manufacture critical modules and components used in semiconductor production equipment. These systems directly influence manufacturing precision, process stability, and production yields, making them fundamental to advanced chip fabrication.

As AI processors, HPC systems, and advanced packaging technologies continue to evolve, equipment requirements become increasingly demanding. For example, ALD technologies are becoming essential as semiconductor manufacturing moves below the two-nanometre process node.

By expanding its global manufacturing network and investing in Thailand, FoxSemicon intends to support customers as the industry transitions toward increasingly advanced technologies.

Building thailand’s semiconductor ecosystem
One of the most notable aspects of FoxSemicon’s Thailand strategy is its emphasis on domestic supply chain development.

The company has stated that at least a quarter of its raw materials will be sourced locally. However, local procurement is viewed as more than a cost-saving measure. Instead, it forms part of a wider effort to create a sustainable semiconductor manufacturing ecosystem within Thailand.

FoxSemicon is working closely with Thai suppliers in areas including precision machining, sheet metal fabrication, surface treatment technologies, and high-precision components. The goal is to help local companies achieve the quality and manufacturing standards required by international semiconductor customers.

As supplier capabilities mature, more Thai firms will gain opportunities to participate in global semiconductor markets. This development could significantly strengthen Thailand’s position within the regional technology landscape.

FoxSemicon believes that continued investment by semiconductor manufacturers, combined with improvements in local capabilities, could establish Thailand as a major semiconductor equipment manufacturing hub in Southeast Asia.

Talent development: A critical priority
While advanced facilities and sophisticated equipment are essential, FoxSemicon emphasises that people remain the foundation of the semiconductor industry.

Modern semiconductor equipment manufacturing requires expertise across a broad range of disciplines, including materials science, mechanical engineering, electrical engineering, automation, software development, precision machining, surface treatment, quality management, and supply chain management.

Developing expertise in these areas requires substantial time and investment. Recognising this reality, FoxSemicon has made workforce development one of its highest priorities in Thailand.

The company is collaborating with universities, technical institutions, and academic partners to strengthen connections between education and industry. Internship programmes and industrial-academic partnerships are intended to nurture the next generation of semiconductor professionals.

According to FoxSemicon, building factories is relatively straightforward compared with developing a sustainable pipeline of skilled engineers and technicians. By sharing decades of manufacturing experience and technical knowledge, the company hopes to contribute meaningfully to Thailand’s long-term semiconductor ambitions.

Key ingredients for national success
Thailand is currently developing a national semiconductor strategy, and FoxSemicon believes the initiative demonstrates a strong commitment to becoming a more significant player in the global industry.

From the company’s perspective, three factors will be particularly important.

The first is talent development. Expanding the pool of skilled engineers, technicians, and manufacturing professionals will be essential to sustaining long-term industry growth.

The second is creating a strong domestic supply chain. Increased participation by local suppliers will enhance manufacturing efficiency, strengthen industrial capabilities, and improve resilience.

The third is collaboration across the broader ecosystem. Successful semiconductor industries rely on close cooperation between government agencies, universities, research institutions, industry partners, and investors.

FoxSemicon believes Thailand is moving in the right direction and is well positioned to attract additional investment if momentum continues.

The future of automation and smart manufacturing
As semiconductor manufacturing enters the angstrom era, automation is becoming increasingly important.

Through its subsidiary, Kainova Technology, FoxSemicon develops automation solutions for wafer handling, photomask management, and advanced packaging applications.

The company believes next-generation semiconductor manufacturing will require far greater levels of automation due to increasing complexity, tighter tolerances, and the introduction of new materials such as glass substrates.

These materials are larger and more fragile than traditional silicon wafers, creating new challenges for handling systems and production equipment.

Automation is also evolving beyond simple material transport. Future systems will link process tools across entire fabrication facilities, enabling smarter and more efficient manufacturing environments.

According to FoxSemicon, automation will become a fundamental enabler of future semiconductor production by improving equipment utilisation, efficiency, quality, and overall return on investment.

AI, In-Situ monitoring and yield improvement
Another key technology area highlighted by FoxSemicon is real-time process monitoring.

Traditional process verification often occurs only after wafers have completed manufacturing steps. By the time defects are identified, significant losses may already have occurred.

In-situ sensing technologies allow manufacturers to monitor process conditions continuously within semiconductor equipment. This enables immediate detection of process variations, tighter endpoint control, and improved consistency.

When combined with AI-driven analytics, the benefits become even more significant.

AI can analyse vast quantities of operational data, identify emerging issues, optimise process parameters, predict equipment degradation, and support predictive maintenance strategies.

The result is improved equipment uptime, higher productivity, enhanced process stability, and ultimately better manufacturing yields.

FoxSemicon believes future semiconductor equipment will increasingly incorporate intelligent decision-making capabilities powered by real-time data analysis and artificial intelligence.

Advanced packaging moves centre stage
Advanced packaging has rapidly become one of the most important areas of semiconductor innovation.

Driven by AI, HPC, high-bandwidth memory (HBM), and next-generation data centre applications, demand is growing for solutions that deliver higher performance, lower power consumption, and greater bandwidth.

FoxSemicon believes that over the next five years, industry focus will shift increasingly toward advanced packaging, heterogeneous integration, and system-level integration rather than exclusively pursuing smaller process nodes.

Technologies such as panel-level packaging, advanced modules, and heterogeneous integration are expected to evolve simultaneously, serving different application needs rather than competing for a single dominant position.

Importantly, these trends align closely with FoxSemicon’s manufacturing expertise. Advanced packaging requires sophisticated deposition, etch, metrology, and automation technologies, all areas in which the company has established extensive capabilities and partnerships.

Beyond semiconductors
While semiconductors remain its primary focus, FoxSemicon is also expanding into aerospace, medical devices, and robotics.

Although these industries serve different markets, they share common manufacturing requirements including precision, reliability, traceability, and stringent quality standards.

FoxSemicon believes the competencies it has developed over decades in semiconductor manufacturing are highly transferable. Expertise in precision machining, quality assurance, system integration, and global manufacturing management provides a strong foundation for expansion into adjacent high-technology sectors.

The company’s emphasis on “copy exactly” manufacturing, ensuring products meet identical standards regardless of production location, is particularly valuable for industries with strict regulatory and performance requirements.

Sustainability as a core strategy
Sustainability is becoming increasingly important throughout the semiconductor supply chain, and FoxSemicon has embedded environmental considerations into its long-term strategy.

The company has implemented global programmes focused on greenhouse gas management, energy efficiency, water conservation, and sustainable supply chain practices.

In Thailand, sustainability principles were incorporated from the outset. Facilities were designed with comprehensive wastewater treatment systems and energy management programmes aligned with the company’s global environmental standards.

FoxSemicon’s view is that manufacturing excellence and sustainability are mutually reinforcing goals. Improving operational efficiency, conserving resources, and reducing environmental impact all contribute to long-term business resilience and value creation.

A global industry with regional manufacturing
Looking ahead, FoxSemicon does not believe the semiconductor industry is moving toward isolation or deglobalisation.

Rather, it sees the future as a balance between regional manufacturing and global collaboration.

Production capacity may become more geographically distributed as companies seek greater resilience. However, innovation, equipment development, materials technology, and engineering expertise will remain highly international in nature.

No single country or region possesses every element required for advanced semiconductor manufacturing. As a result, global collaboration will remain fundamental to industry success.

FoxSemicon’s network spanning Taiwan, China, Thailand, and the United States reflects this philosophy, combining regional responsiveness with globally integrated operations.

Thailand’s growing global importance
FoxSemicon’s outlook for Thailand is exceptionally positive.

The company expects the nation to become one of the flagship hubs within its global manufacturing network, supporting advanced manufacturing, supplier development, talent cultivation, and smart factory initiatives.

More broadly, FoxSemicon believes Thailand has the potential to emerge as one of Asia’s leading semiconductor equipment manufacturing centres. Continued investment in skills, infrastructure, and industrial ecosystems could position the country as a critical contributor to the global semiconductor supply chain.

For FoxSemicon, Thailand represents far more than a manufacturing location. It is a strategic partner in the next phase of semiconductor industry growth, one that combines advanced manufacturing capabilities with a growing ecosystem of suppliers, talent, and innovation.

As demand for AI, advanced computing, and next-generation electronics accelerates, the company’s investment suggests that Thailand’s role in the global semiconductor landscape may be only just beginning.