US semiconductor giant to expand chip investment in Thailand

WEDNESDAY, OCTOBER 01, 2025

Lumentum, a leading US semiconductor firm, has announced plans to expand its manufacturing base in Thailand and establish a new photonics chip R&D and design centre. The investment focuses on high-performance photonics chips used in AI, fibre optics, and data centre technologies.

  • US semiconductor giant Lumentum is expanding its production capacity in Thailand with a new investment of over 2.3 billion baht to produce advanced photonics chips for industries like AI, medical devices, and intelligent vehicles.
  • A major part of the expansion involves establishing Thailand's first full-scale chip research and design (R&D) center, aiming to shift the country's role from assembly and testing to design and innovation.
  • The investment will also focus on creating high-skilled jobs for local engineers and developing a talent pipeline by collaborating with universities on specialized curricula for the semiconductor industry.

Narit Therdsteerasukdi, Secretary-General of the Board of Investment (BOI), announced that US semiconductor giant Lumentum plans to expand its production capacity in Thailand and establish a new research and design centre focused on photonics chips.

These advanced chips, which transmit signals using light, are critical components in high-performance processors that power industries such as artificial intelligence, fibre optics, and data centres.

The global photonics chip market is currently valued at around US$13 billion and is projected to double within five years, as photonics technology becomes a cornerstone for next-generation industries.

“Lumentum has announced plans to expand its photonics chip production base and establish a new research and design centre in Thailand. The investment aims to strengthen its local operations with advanced, energy-efficient chip technology capable of high-performance processing, accelerating supply to meet the surging demand from high-tech industries and supporting the growth of Thailand’s semiconductor sector,” Narit said.

Lumentum has been operating in Thailand since 2017 under the name Lumentum International (Thailand) Co., Ltd., following BOI investment promotion for an assembly and testing base for chips used in communications and telecommunications.

The company’s facility is located in Nava Nakorn Industrial Estate, Pathum Thani, with a total investment exceeding 20 billion baht.

US semiconductor giant to expand chip investment in Thailand

The Thai base now employs more than 6,000 workers, including over 700 engineers and scientists trained in photonics technology. In 2024, exports from the Thai plant were worth over 14 billion baht, with the company forecasting that output will more than double in 2025.

The latest project approved by the BOI will see Lumentum invest more than 2.3 billion baht to expand its Thai operations with a new facility producing ultra-high-power chip-on-carrier light-emitting chips.

These advanced chips will be used in high-precision or high-performance applications such as AI processors (GPUs), laser-based medical devices, and intelligent vehicles.

Beyond manufacturing, Lumentum has played a key role in building Thailand’s photonics chip ecosystem by attracting over 20 global suppliers to establish production bases in the country.

“Lumentum is a partner helping to lay the foundation for Thailand’s semiconductor industry,” said Narit. “Its major expansion, particularly the establishment of the first full-scale chip research and design centre in Thailand, is a strategic investment of great significance. It reflects confidence in Thailand’s potential and marks a shift from being a chip assembly and testing base to a centre of design and innovation, moving toward the goal of ‘Chip Made in Thailand’.”

Narit added that Lumentum’s new photonics R&D hub will feature prototype production lines, product reliability testing laboratories, and advanced software development, creating jobs for Thai engineers and high-skilled personnel. 

The company also plans to collaborate with universities and research institutes to develop specialised photonics chip curricula, nurturing a new generation of talent for the future semiconductor industry.

Thailand remains Lumentum’s only production base for photonics chips in ASEAN. Officials said this strategic partnership offers a major opportunity for the country to advance from traditional electronics manufacturing to high-value, next-generation chip production, while also fostering a photonics cluster and attracting more global suppliers in the years ahead.