During a visit to Bangkok in December, Chief Executive Officer Jensen Huang will reveal the details of these investments, according to Thailand’s Commerce Minister Pichai Naripthaphan. However, he did not disclose specifics regarding the investment amount or other particulars.
Pichai indicated in a Bloomberg interview that Nvidia's investment could catalyze further funding in related sectors.
Securing Nvidia as an investor would significantly benefit Thailand's economy, which is competing with neighboring countries to attract investments from major technology firms. In recent years, Thailand has successfully attracted multibillion-dollar investments from companies like Amazon.com Inc., Google, and Microsoft for the development of data centers and cloud infrastructure.
A representative from Nvidia did not respond to a request for comment via email.
Based in Santa Clara, California, Nvidia has already committed to investing in AI infrastructure in Indonesia and Malaysia, while also exploring potential opportunities in Vietnam. The company’s chips are produced by Taiwan Semiconductor Manufacturing Co., and its AI servers are primarily assembled by Taiwanese manufacturers.
As a traditional hub for automotive and electronics manufacturing, Thailand is striving to catch up with Malaysia and Singapore. The country aims to enhance its economic growth, which has averaged less than 2% during nearly a decade of military-backed governance.
The interest from Nvidia, along with other technology firms and supply chain participants, is expected to revitalize investment applications to pre-2014 coup levels and help Thailand recover from the “lost opportunities” of the past decade, according to Pichai.
The future of the Thai economy appears promising, marking just the beginning of a positive trajectory, stated the experienced politician who took office in September under the administration of new Prime Minister Paetongtarn Shinawatra.
This year has already witnessed a notable increase in foreign investment commitments, particularly in sectors such as data centers and printed circuit board manufacturing. Official statistics indicate that investment pledges surged by 42%, reaching 722.5 billion baht ($21.6 billion) in the first nine months of 2024 compared to the previous year.
Pichai mentioned that new investment proposals, including those from local firms, could potentially total up to 1 trillion baht this year.
Trade Agreements
Thailand aims to finalize free trade agreements with the European Union and the United Arab Emirates in the coming year, according to Pichai. A deal with the European Free Trade Association is expected to be signed during the World Economic Forum in January, which will facilitate progress on the EU agreement.
Negotiations with the EU resumed last year after being stalled in 2014 due to the military coup's aftermath. In August, the Thai parliament approved a strategy to enhance relations with the EU.
The administration led by Paetongtarn is advocating for a food security agreement with the UAE, which would involve Thailand increasing its exports of frozen chicken, rice, and ready-to-eat meals. This initiative aims to assist the UAE in maintaining a commodity stockpile, with similar agreements being considered with Qatar, Kuwait, and Oman.
Pichai noted, “The conflict in the Middle East may intensify. In such a scenario, food security will be critical. We propose to store food for every purchasing country and ensure delivery within 24 hours.”
Thailand is a significant producer and exporter of sugar, poultry, and rice, generating over $30 billion annually from agricultural and food product exports.
Pichai indicated that the export data for September, which will be released next week, is expected to show an increase for the third consecutive month. Additionally, full-year exports from Thailand are projected to surpass the government's target of a 1-2% growth, despite the challenges posed by last year's elevated figures and a stronger baht. Official data reveals that exports have risen by 4.2% in the first eight months of the year.