Good news for the Thai industrial base - US "Friend Shoring" benefits Thailand

"The 'America First' economic policy directed by President Trump will focus on, most importantly, re-shoring supply chains out of China and back to the US, followed by near-shoring and friend-shoring. Trump is also set to unleash tariffs on foreign goods as the US-China decoupling gathers pace. 

Focusing on friend-shoring trends, Goldman's Allen Chang, Verena Jeng, and others hosted the "Make in Thailand Tour" last week.

During the visit to AI server liquid cooling, automotive electronics, electric vehicles, and other high-tech factories in the Southeast Asian country, Chang found a growing number of US companies are requiring suppliers to have not only Chinese factories but also a "plus one" location outside the world's second-largest economy for diversification purposes. This has only sparked a boom in business activity in Thailand."

--Major US Firms Demand Suppliers Embrace "China + 1" Factory Strategy, Zerohedge

Definitions

Re-shoring: The process of bringing back manufacturing or other business processes to the company's home country from overseas, typically where they were previously offshored for cost advantages.
Near-shoring: Relocating business processes or manufacturing to a nearby country, usually within the same region to reduce logistics costs, improve communication due to similar time zones, and sometimes to leverage cultural or economic similarities.
Friend-shoring: Moving business operations to countries that are considered geopolitical allies or friends, typically to mitigate risks associated with geopolitical tensions or trade wars. This strategy focuses on stability, trust, and shared values rather than just proximity or cost.

https://www.zerohedge.com/technology/major-us-firms-demand-suppliers-embrace-china-1-factory-strategy