Taiwanese printed circuit board (PCB) manufacturers are reassessing their expansion strategies in Thailand following the announcement of steep new tariffs by the United States. The 37% reciprocal tariff imposed by the U.S. on Thai exports has cast uncertainty over Thailand's role as a major overseas manufacturing base for Taiwanese firms.

Li Chang-ming, former chairman of the Taiwan Printed Circuit Association (TPCA) and current senior advisor to Unimicron Technology Corp., told local media that the unexpectedly high tariff on Thailand could cause Taiwanese PCB producers to slow down their operations and expansion plans in the country. "Many Taiwanese firms were encouraged to expand in Thailand as a strategy to diversify away from China amid the ongoing U.S.-China trade war," Li said.

Currently, 14 Taiwanese PCB companies—including Unimicron, Compeq Manufacturing, Zhen Ding Tech, and Gold Circuit Electronics—operate production facilities in Thailand. These plants mostly produce components for AI servers, computers, and semiconductors—not for direct export to the U.S., but for assembly by regional partners.

However, on April 2 (U.S. time), former President Donald Trump announced sweeping new tariffs under a fresh round of trade actions. A flat 10% duty on all imports from every country was set to begin April 5, followed by differentiated rates based on trade surpluses starting April 9. Thailand was hit with a 37% rate, compared to 32% for Taiwan, 34% for China, 24% for Japan, and 26% for South Korea. Vietnam received the highest rate at 46%.

While a 90-day pause on full implementation was announced on April 10, Trump confirmed that all countries—except China—would temporarily face only a 10% tariff during the review period. China remains subject to a sharply higher 125% tariff, which it matched with its own retaliatory measures.

Li noted that the higher-than-expected rate for Thailand might discourage further investments. "This poses a dilemma for companies that moved capacity to Thailand to avoid U.S.-China tensions. Now they face new risks from Washington," he said. He added that some manufacturers may slow production in Thailand for goods destined for the U.S. market.

In the longer term, Thai industry insiders fear that the U.S. tariff hike could drive manufacturers to shift their bases to countries with lower U.S. tariff exposure, such as Vietnam or Mexico. According to local business leaders, there is growing pressure on the Thai government to negotiate with the U.S. for better trade terms. If the 37% tariff remains, initial assessments suggest it could affect as many as 600,000 to 800,000 workers in Thailand's electronics sector.

Meanwhile, Li emphasized that while Trump has been calling for more manufacturing to return to the U.S., such a shift would be difficult for Taiwanese PCB suppliers. He cited high labor costs and a lack of supporting infrastructure as major barriers.

Chiu Shih-fang, an analyst at the Taiwan Institute of Economic Research, echoed this sentiment, noting that PCB makers face greater challenges than final product assemblers in relocating production to the U.S. “Component manufacturers like PCB suppliers have more complex production processes and greater dependencies on upstream and downstream partners,” she said.

Chiu also warned that end-user demand for electronics—including EVs, servers, laptops, and smartphones—may weaken as higher tariffs push up prices. If customers shift the burden of rising costs to suppliers, Taiwanese PCB firms could face further financial pressure.

Yet despite these concerns, Thailand's domestic electronics industry remains cautiously optimistic. On April 9, during a roundtable forum titled “Trump's Global Quake: Thailand Survival Strategy” held in Bangkok, Sawake Prakijkritthanont, Vice President of the Thailand Printed Circuit Association (THPCA), said more than 50 leading global firms are in the process of shifting production to Thailand.

According to Prakijkritthanont, over THB 180 billion (approximately USD 5.3 billion or CNY 39.1 billion) has already been invested in establishing PCB supply chains in Thailand over the past two to three years. About 25% of those companies have completed construction and begun production. He attributed this trend to Thailand's political stability and well-developed infrastructure, calling the country a “buffer zone” amid growing global trade tensions.

Global demand for PCBs remains high, with the market expected to exceed $80 billion. While geopolitical risks are rising, the battle to dominate the next-generation supply chain continues to intensify across Southeast Asia.