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Thai Tech Sector Prepares for Impact of New US AI Chip Export Rules

Thailand’s technology sector is bracing for the effects of new United States export restrictions on advanced AI chips, which are set to take effect on May 15. The new regulations are part of Washington’s broader effort to control the global flow of high-performance computing power amid growing concerns over national security and geopolitical tensions, particularly with China.

The rules classify countries into three tiers and impose limits on the computing power of AI chips that can be exported to each group. Thailand, while not directly targeted, will still feel the ripple effects due to its growing role in the regional tech and data infrastructure landscape.

Thailand is increasingly viewed as an alternative to Malaysia for hosting regional data centers. With top-tier countries reaching capacity, Thailand’s position as a Tier 2 nation with available infrastructure is becoming more attractive to international companies. However, the new US regulations could introduce uncertainty for companies that rely on importing high-end AI chips.

Siam AI, a prominent Thai cloud service provider, has already indicated it may consider expanding operations abroad if the restrictions continue to tighten. The firm emphasized that access to top-tier chips is essential for training large-scale AI models and delivering competitive services.

Local distributors are also tightening compliance procedures to prevent misuse of AI chip imports. SiS Distribution, one of Thailand’s largest IT product distributors, is stepping up internal audits to ensure no restricted hardware ends up in the hands of proxy buyers with links to China. Managing Director Somchai Sittichaisrichart noted concerns that Thai customers could be exploited as intermediaries for exporting restricted AI servers to Chinese markets.

The tightening export controls come at a time when Thailand is actively investing in its digital economy. In 2023, the sector contributed around 6 percent to GDP and is projected to reach 11 percent by 2027. The government’s Thailand 4.0 strategy envisions the country as a leading regional digital hub, fostering growth across AI, cloud computing, and data-driven industries.

However, the new rules could complicate those ambitions. Industry leaders warn that without reliable access to cutting-edge computing components, Thailand’s digital development may be slowed or forced to rely more heavily on alternative sources, such as chip manufacturers in Europe or domestic R&D.

As the deadline for the new export controls approaches, Thai tech firms are closely monitoring policy developments and preparing to adjust their operations to stay competitive in a fast-changing global landscape.

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