The latest U.S. proposal restricting exports of advanced artificial intelligence (AI) chips to Malaysia and Thailand is poised to have minimal direct repercussions for Thailand’s main electronics players, according to an assessment by CGS International Securities (Thailand) (CGSI).
The U.S. Commerce Department is considering expanding its chip export restrictions, originally targeting China, to cover Southeast Asian countries such as Thailand and Malaysia. The goal is to close potential channels through which high-end AI semiconductors might reach Chinese firms via third-party markets. While this initiative has stirred concerns over supply chain disruptions and technology investments in the region, analysts at CGSI suggest that the direct impact on listed Thai electronics companies appears limited.
Hana Microelectronics, for instance, maintains a minor presence in the AI chip supply chain. CGSI notes that while U.S. curbs would mainly hit logic chip exports, Hana’s core business revolves around analog chip production—leaving it largely outside the scope of the restrictions. Similarly, printed circuit board manufacturer KCE Electronics is expected to see negligible effects, given its limited exposure to AI-related supply dynamics.
Delta Electronics, a major supplier with significant AI exposure, might experience some turbulence due to the policy shift. However, CGSI points out that affected sales volumes are not substantial relative to Delta’s broader portfolio. Moreover, should AI data centers be redirected toward different locations outside Thailand or Malaysia, the fallout for Delta would likely be contained.
However, the potential ban may affect companies with concentrated exposure to the AI ecosystem in Thailand or Malaysia, such as certain utilities or industrial estate players.
Despite the muted reaction to the threatened chip export ban, CGSI maintains its Underweight rating on the overall Electronics sector. The brokerage points to weak near-term demand, persisting global trade uncertainties, and an unappealing risk-reward profile as continuing challenges for the industry through 2025.
