ABSTRACT
The electronic industry is the largest industry based on its contribution to exports. The industry is dominated by Western and Japanese TNCs. Most Thai firms are subcontractors producing parts and components. Compared to neighbouring countries like Malaysia and Singapore, TNCs in Thailand are focused on less technologically sophisticated activities, that is, labour-intensive assembly. Local firms have been also technologically passive learners. The weakest parts are upstream activities, like IC design and wafer fabrication. Nonetheless, the HDD sub-sector performed much better than others, due to active roles of TNCs, better linkages with local suppliers, and the availability of sector-specific public and private intermediaries and tax incentives.
