Thailand chips away at US trade deficit with 62% increase in chip market exports

[snoop1130]

 

The United States has been experiencing a growing deficit in its chipmaking trade with Asia, but the good news is that Thailand is helping to chip away at that gap. According to US Census data, US imports of chips grew 17% from last year to US$4.86 billion in February, with Asia accounting for 83% of that total.

 

Over the past three years, Thailand has been seen as an ailing patient trying to recover from Covid-19. The kingdom’s malady-ridden economy and tourism sector needed more than two vaccine doses and a booster shot to get back on its feet but over the past year, the Land of Smiles has emerged from convalescence much stronger. Tourism is flourishing and exports are on the increase, and that includes the chip industry.

 

Thailand, Vietnam, India and Cambodia have emerged as early winners this year as semiconductor production begins to move away from traditional centres such as Taiwan and China.

 

India saw its semiconductor shipments increase 34 times to US$152 million, while Cambodia clocked in an impressive 698% growth, falling just shy of Japan at US$166 million, an amount that would be unheard of in years past, Bloomberg reported. But it is Thailand that has emerged as a strong contender in the US chip market with a 62% increase in trade with the US.

 

Vietnam and Thailand, both of which have much bigger slices of the chipmaking market, increased their US trade in the sector by 75% and 62%, respectively. Vietnam has accounted for over 10% of US imports for seven straight months. US officials have expressed growing concern about their country’s overreliance on overseas suppliers, such as Taiwan, and South Korea, for the most advanced chipmaking.

 

US Commerce Secretary Gina Raimondo has warned that the nation’s “dependence on Taiwan for chips is untenable and unsafe.”

 

Full Story: https://thethaiger.com/hot-news/economy/thailand-chips-away-at-us-trade-deficit-with-62-increase-in-chip-market-exports

 

-- © Copyright Thaiger 2023-04-06

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

The most versatile and flexible rental investment and holiday home solution in Thailand - click for more information.