Panasonic Holdings plans to invest ¥17 billion ($115 million) in a Thailand facility to manufacture copper materials used in AI server circuit boards, as global demand for artificial intelligence infrastructure accelerates, Nikkei reported.
The Japanese conglomerate’s subsidiary Panasonic Industry will construct the plant in Ayutthaya province, with operations scheduled to begin in November 2027. Mass production is targeted for fiscal 2028, with plans to double overall capacity for the materials by fiscal 2029.
The investment positions Panasonic to capitalize on the booming market for multilayer printed circuit boards essential to AI servers. Industry data shows the AI server PCB market could reach $37.5 billion by 2030, growing at nearly 39% annually. Thailand has emerged as a preferred manufacturing destination, with PCB-related investments exceeding $3 billion in 2024 alone.
However, the timeline raises questions about whether Panasonic can capture meaningful market share. By 2027, established suppliers may have already secured long-term contracts with major cloud providers and server manufacturers. The company also faces competition from Chinese and Taiwanese manufacturers who have been aggressively expanding capacity.
Thailand’s appeal extends beyond cost advantages, offering investment incentives including eight-year tax exemptions for data center and AI infrastructure projects. Yet infrastructure constraints and skilled labor shortages could challenge rapid scaling of production once operational.
