Application-Specific Integrated Circuit in Thailand Trends and Forecast
The future of the application-specific integrated circuit market in Thailand looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets. The global application-specific integrated circuit market is expected to reach an estimated $21.8 billion by 2031 with a CAGR of 5.7% from 2025 to 2031. The application-specific integrated circuit market in Thailand is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
• Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to its lower complexity and broad range of applications.
• Within the application category, consumer electronics is expected to witness the highest growth due to the increasing use of application-specific integrated circuits in various gadgets, such as smartphones, tablets, and laptops.
Emerging Trends in the Application-Specific Integrated Circuit Market in Thailand
The ASIC market in Thailand is making progress due to improvements in technology, changes in industry demands, and the growing need for tailored products. Various markets such as telecom, automotive, and healthcare are expanding, which also increases the need for high-performance and energy-efficient ASICs. These changes will determine the future of Thailand’s semiconductor market and its position in global value chains. Below are five trends that are changing the landscape of the ASIC industry in Thailand.
• Expansion of 5G Networks: In Thailand’s case, the rise of 5G technology is one of the most important drivers for ASIC adoption. The introduction of high-performance and low-latency systems increases the demand for customized ASICs designed for the network’s infrastructure. Telecom and technology companies are using ASICs in base stations and mobile phones to process more data and improve connectivity. This trend will sustain the growth of Thailand’s specialized semiconductor market, further strengthening Thailand’s telecom industry.
• Adoption of Electric Vehicles (EV): The adoption of electric vehicles (EV) in Thailand is set to commence, attracting immense demand for ASICs. Custom chips are increasingly used for battery management, motor control, and power conversion. The automotive sector’s focus on emission reduction and energy efficiency improvements brings ASICs into the vehicle performance optimization picture. The EV market in Thailand invites ASIC manufacturers to innovate and create new designs for this new era of transportation.
• Integrated Smart Manufacturing Fusion: The concept of Industry 4.0 in Thailand drives a push toward the adoption of smart manufacturing practices. The application of application-specific integrated circuits supports this transition. The automation of production lines for increased efficiency and data management in a controlled environment with interlinked systems requires ASICs. As industrial automation grows in Thailand, the demand for sensors, actuators, and control system ASICs will increase. This will reinforce Thailand’s position in global manufacturing, ensuring competitiveness in the market.
• Expansion of the Internet of Things (IoT): Thailand is experiencing a significant increase in the application of the Internet of Things (IoT) in agriculture, healthcare, and smart city development. The rise in IoT devices is creating more demand for low-power, high-efficiency ASICs. These chips are crucial for real-time data processing and device management. As the development of IoT continues, the demand for ASICs supporting smart homes, connected devices, and urban infrastructure will increase, making them essential to Thailand’s overall ecosystem.
• Artificial Intelligence (AI) and Machine Learning (ML): Thailand is adopting artificial intelligence (AI) and machine learning (ML) in the healthcare, finance, and automotive sectors. Custom ASIC design is fundamental for the optimization of AI workloads in data processing, pattern recognition, and decision-making. The demand for advanced and efficient processing chips is driving innovation in the semiconductor industry. As AI technologies progress, the utilization of ASICs in Thailand will increase, alongside the application of autonomous programmable systems and smart technologies.
These trends are reshaping the ASIC market in Thailand and have the potential to impact several sectors. With growth in telecom, electric vehicles, IoT, and AI, Thailand is positioning itself on the global semiconductor map. The greater use of ASICs enhances innovation, efficiency, and sustainability, ensuring Thailand’s competitiveness in the ever-evolving technology market.
Recent Developments in the Application-Specific Integrated Circuit Market in Thailand
Thailand’s ASIC market is changing rapidly as a result of improved technology and heightened industry and government interest. The focus on digital transformation, electric vehicles, smart manufacturing, and IoT is increasing the demand for specially designed integrated circuits. These changes are impacting not only Thailand’s semiconductor industry but also fostering a shift to position Thailand as a competitive force in high-tech manufacturing. Below are five key developments shaping the ASIC market in Thailand.
• Government Support for Digital Infrastructure: The expansion of the ASIC market in Thailand is significantly boosted by the government’s investments in the construction of 5G networks and smart city projects. The government’s allocation of resources toward technology creates a favorable market for specialized semiconductor solutions. There is an unprecedented demand for telecom, data processing, and IoT-optimized ASICs during the rollout of 5G networks and the advancement of smart city projects. This move will further enhance the country’s tech ecosystem and increase its importance in semiconductor innovation.
• Growth in Electric Vehicle (EV) Manufacturing: The growth in electric vehicle (EV) manufacturing in Thailand is being driven by both local and foreign companies. This approach is very favorable for the ASIC market because EVs are heavily dependent on sophisticated semiconductor devices to manage and optimize batteries, power, and energy use. Custom chip development by ASIC manufacturers for EVs creates new business avenues and unlocks a higher demand for EVs. Thailand’s emergence as a center for EV manufacturing will positively impact the ASIC market, with growth expected in automotive-related semiconductors.
• Rise of Smart Manufacturing Technologies: The increased integration of smart manufacturing technologies, such as robotics and automation, in Thailand will heighten the demand for specialized ASICs. These chips are crucial for improving production output, lowering energy use, and automating intricate processes. Thailand’s pursuit of Industry 4.0 will facilitate the use of customized ASICs in the country’s manufacturing ecosystem. The growth of smart factory solutions will further drive the Thai market for ASICs, through increased applications for sensors, control systems, and industrial automation.
• Expansion of IoT Applications: There is an increasing adoption of IoT devices in agriculture, healthcare, and urban infrastructure in Thailand. These devices are driving the demand for low-power, efficient ASICs. Custom chips are required for these devices to enable connectivity and process data in real time. Specialized ASICs are becoming increasingly popular in Thailand’s IoT ecosystem, especially in smart cities. The growth of these IoT applications will continuously support the demand for ASICs and position Thailand as a dominant player in the global IoT semiconductor market.
• Advancements in AI and ML Technologies: The adoption of artificial intelligence (AI) and machine learning (ML) in Thailand is accelerating, and the growth of the semiconductor market will surge alongside it. The need for efficient, high-powered application-specific integrated circuits in Thailand will dramatically increase, particularly in the healthcare, finance, and manufacturing sectors. Thailand’s investments in AI technologies have the potential to grow significantly over time. As AI advances, continued investment in the Thai ASIC market will strengthen its position alongside China and the United States.
These developments highlight the dynamic changes in Thailand’s ASIC market, driven by government support, the growth of electric vehicles, smart manufacturing, IoT, and AI technologies. Thailand is positioning itself as a key player in the global technology ecosystem, and the increasing demand for customized ASICs will continue to drive growth in the semiconductor industry. These advancements will solidify Thailand’s role in the global semiconductor and technology landscape.
Strategic Growth Opportunities for Application-Specific Integrated Circuit Market in Thailand
The improvement in technology and the rising demand in various industries have caused the application-specific integrated circuits (ASIC) market to grow rapidly in Thailand. Key sectors like telecom, automotive, healthcare, and smart manufacturing are seeking new technologies to enhance their productivity. Furthermore, Thailand’s strategic location in the ASEAN region and its growing tech ecosystem offer many opportunities for ASIC manufacturers. Here are five important opportunities within various sectors driving the growth of the ASIC market in Thailand.
• Telecom and 5G Networks: With the rapid growth of 5G telecom networks in Thailand, there is high demand for telecom infrastructure-specialized ASICs. These integrated circuits are crucial for data communications at high speeds, as well as low-latency systems required in base stations and mobile devices for 5G. Telecom firms are increasingly using ASICs, as these circuits perform a large number of operations quickly. As Thailand expands its use of 5G, there will be a significantly greater need for specialized ASICs. This presents a great opportunity for local businesses to become more involved in the semiconductor market.
• Electric Vehicle (EV) Market: The innovation in the industry has driven both international and domestic manufacturers to capitalize on Thai markets. Opportunities for innovation exist with the increasing optimization of energy-efficient and high-performance ASICs in electric vehicles (EVs). The adoption of electric vehicles is being accelerated by the Thai government’s policy of incentivizing cleaner energy usage. Thai policies, along with the fast-moving international market, are creating an ideal opportunity for semiconductor companies to transform Thailand into a hub for the electric vehicle market by providing the automotive industry with customized semiconductors. ASICs play a critical role in battery management, motor control, and power conversion systems in EVs, making their contribution vital to the country.
• Smart Manufacturing and Industry 4.0: Thailand is transitioning to smart manufacturing, resulting in a rapid increase in the adoption of automation, robotics, and data-related processing. National policies are driving advances in smart manufacturing, which will, in turn, increase demand for application-specific integrated circuits (ASICs) for industrial automation. Through these policies, Thailand will retain its global competitiveness in manufacturing, providing an attractive environment for ASIC designers to address smart factory needs. In automated factories, managing processes such as sensor control and process control is complex and requires significant attention, which increases the need for integrated circuits. These changes highlight Thailand’s commitment to Industry 4.0.
• Internet of Things (IoT) Applications: Thailand is witnessing the rise of the IoT ecosystem across its agricultural, healthcare, and smart city sectors. As the number of connected devices grows, the demand for low-power, efficient ASICs capable of handling real-time data processing and connectivity continues to increase. Efficient and high-performance IoT devices, from smart sensors to wearables, require ASICs to ensure optimal performance and energy efficiency. Investments in supporting Thailand’s growing IoT infrastructure will help solidify the country’s position as a hub for IoT chip manufacturers, driving the growth of the ASIC market.
• Artificial Intelligence (AI) and Machine Learning (ML): Thailand’s healthcare, finance, and automotive sectors have opened new doors for AI and ML applications, benefiting the ASIC market. Custom ASICs are crucial for optimizing AI workloads, such as data processing, pattern recognition, and decision-making algorithms, increasing the demand for autonomous systems and AI-powered solutions. Thailand’s growing adoption of AI will further increase the country’s need for application-specific integrated circuits, presenting growth opportunities for semiconductor manufacturers in Thailand.
The various avenues through which ASICs are being used, and their potential for further application in Thailand, are tremendous. The growing tech ecosystem in Thailand is fostering developments in telecom, EVs, smart manufacturing, IoT, AI, and more. Companies capitalizing on these opportunities will be essential for the growth of Thailand’s semiconductor ecosystem and industry.
Application-Specific Integrated Circuit Market in Thailand Driver and Challenges
The application-specific integrated circuits (ASIC) market in Thailand is influenced by multiple interrelated technological, economic, and regulatory factors that act as drivers or constraints for growth. Technological advancements, government initiatives, and the ongoing trend of automation and digitalization are some of the main factors pushing the market forward. However, challenges related to costs, competition, and supply chain complexity must be addressed. Below are the primary drivers and challenges that impact the ASIC market in Thailand.
The factors responsible for driving the application-specific integrated circuits market in Thailand include:
• Emerging Technologies of 5G and IoT: The growth of 5G technology and the adoption of IoT devices have been leading drivers of ASIC demand. These emerging technologies require advanced chips offering superior performance and extremely low latency to process large volumes of data. Both sectors are growing rapidly in Thailand, offering growth opportunities for ASIC designers in these markets. The expansion of 5G and IoT in the country will increase the demand for ASICs, benefiting the market in Thailand and creating significant opportunities for ASIC manufacturers.
• Government Policies for Smart Manufacturing: The Thai government has been investing significantly in smart manufacturing and Industry 4.0, creating opportunities for software and hardware developers, including ASIC designers. Automation and robotics require application-specific chips to perform sophisticated processes and manage data flows. The government’s support of digitalization in industries such as automotive, electronics, and agriculture fosters the use of integrated circuits. These policies will likely result in increased demand for ASIC devices in Thailand, contributing to market growth.
• Growth of Electric Vehicles: Thailand’s increasing focus on the electric vehicle (EV) industry is another key factor driving the growth of the ASIC market. The intricate semiconductor components used in EVs are crucial for optimizing energy usage, battery efficiency, and vehicle operational effectiveness. As Thailand moves toward supporting cleaner energy and EV production, the demand for application-specific integrated circuits (ASICs) for battery management systems, power control units, and motor drives will grow. These economic trends will help Thailand’s semiconductor industry reach new heights, with local and international companies investing in the region.
• Increased Use of Artificial Intelligence and Machine Learning: Many industries, including healthcare, finance, and automotive, are integrating artificial intelligence (AI) and machine learning (ML) technologies. ASICs are essential for the advanced processing of datasets and complex algorithms required for AI and ML applications. As Thailand accelerates its digital transformation and develops its AI infrastructure, specialized ASICs will be increasingly needed. This development will stimulate further AI-related activities in Thailand, making a significant impact on the international cryptocurrency and semiconductor industries.
• Increased Efficiency-Oriented Equipment: Energy efficiency has become a key focus in many industries, driving demand for ASICs that use less energy. However, industries such as telecom, automotive, IoT, and consumer electronics require low-power ASICs that can integrate at the chip level. As industries in Thailand focus on energy-efficient technologies, there is a growing need for energy-efficient ASICs, which will drive the development of more sophisticated integrated circuits.
Challenges in the application-specific integrated circuits market in Thailand are:
• Elevated Costs of Research and Development and Volume Production: The design of application-specific integrated circuits requires significant research, which increases the cost of development and volume production. For many Thai companies, these costs can be prohibitive, especially for small startups. The need for specialized fabrication and skilled personnel further raises investment requirements. Many companies may hesitate to enter the ASIC market or adopt new mass production methods, which could slow industry growth.
• Supply Chain and Component Shortages: Global supply chain disruptions and shortages of essential semiconductor components have impacted Thailand’s ASIC market. The market relies on international suppliers for raw materials and manufacturing equipment, making it vulnerable to geopolitical and logistical disruptions. These delays can affect production schedules, increase costs, and reduce the market’s ability to meet demand.
• Intense Competition from Global Semiconductor Players: Thailand’s semiconductor market faces strong competition from larger global players based in the US, China, and South Korea. These competitors benefit from abundant resources and advanced technology, which puts pressure on local ASIC manufacturers. Thai businesses need to invest in innovation and target diversified markets that address domestic issues while expanding their reach to other countries.
The Thai market for application-specific integrated circuits is supported by innovations, government policies, and the growing demand for energy-efficient devices. However, challenges such as high R&D costs, supply chain issues, and intense global competition also impact the market. Despite these obstacles, the advancement of key industries such as 5G, IoT, EVs, AI, and smart manufacturing will continue to drive growth in Thailand. As the country faces these challenges, it is positioning itself as a major player in the global ASIC market.
List of Application-Specific Integrated Circuit Market in Thailand Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, application-specific integrated circuit companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the application-specific integrated circuit companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Application-Specific Integrated Circuit Market in Thailand by Segment
The study includes a forecast for the application-specific integrated circuit market in Thailand by product type and application.
Application-Specific Integrated Circuit Market in Thailand by Product Type [Analysis by Value from 2019 to 2031]:
• Full Custom ASIC
• Semi-Custom ASIC
• Programmable ASIC
Application-Specific Integrated Circuit Market in Thailand by Application [Analysis by Value from 2019 to 2031]:
• Telecommunication
• Industrial
• Automotive
• Consumer Electronics
• Others
Features of the Application-Specific Integrated Circuit Market in Thailand
Market Size Estimates: Application-specific integrated circuit in Thailand market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Application-specific integrated circuit in Thailand market size by product type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different product type and application for the application-specific integrated circuit in Thailand.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the application-specific integrated circuit in Thailand.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the application-specific integrated circuit market in Thailand?
Answer: The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
Q2. What are the major segments for application-specific integrated circuit market in Thailand?
Answer: The future of the application-specific integrated circuit market in Thailand looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets.
Q3. Which application-specific integrated circuit market segment in Thailand will be the largest in future?
Answer: Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to it’s lower complexity and broad range of applications.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the application-specific integrated circuit market in Thailand by product type (full custom ASIC, semi-custom ASIC, and programmable ASIC), and application (telecommunication, industrial, automotive, consumer electronics, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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