Arya News - A World Bank assessment reinforces this dynamic, identifying Thailand as a key beneficiary of AI supply chain investment but also warning that high input costs remain a major constraint.
BANGKOK – Confidence across Thailand’s digital sector rebounded significantly in the second quarter of 2026, driven by an accelerating global boom in artificial intelligence (AI) demand and a competitive export environment, according to the Digital Economy Promotion Agency (depa).
However, the state agency cautioned that volatile global energy prices and rising semiconductor costs continue to keep overall industry sentiment in negative territory.
Releasing its Q2/2026 survey results on Tuesday (11 August), depa revealed that the overall Digital Industry Sentiment Index rose to 48.4 points, up from 44.5 in the previous quarter.
Although any score below 50 indicates a lack of business confidence, the multi-point gain reflects a widespread recovery across all core metrics, including production volumes, trade performance, project partnerships, and business investment.
Three of the five surveyed sub-sectors crossed back into positive territory during the quarter:
Software: 51.1 (up from Q1)
Digital Service: 50.6
Telecommunications: 50.0
Digital Content: 46.8
Hardware & Smart Devices: 42.9
Dr Supakorn Siddhichai, acting president and CEO of depa, attributed the quarterly rise to expanding capital expenditure in data centres; sustained global demand for electronics and printed circuit boards (PCBs) from key trading partners, including the US and China; and short-term domestic stimulus that helped support consumer spending power.
A weaker Thai baht—which fell to its lowest point in a year during the quarter—further bolstered export competitiveness for local technology vendors.
External Pressures and Cost Headwinds
Despite the positive trajectory, global macroeconomic friction continues to squeeze tech margins.
Depa noted that escalating geopolitical tensions between the US and Iran have driven up crude oil and freight costs, while supply bottlenecks have triggered a rapid surge in raw semiconductor and electronic component prices.
These domestic findings align closely with broader analysis by the World Bank, which identified Thailand as a key regional beneficiary of global tech realignments.
In its 2026 digital economy assessment, the World Bank ranked Thailand fifth among developing nations positioned to capture investment in AI supply chains, semiconductor assembly, and data centre infrastructure.
However, the World Bank similarly warned that high input costs, tight credit conditions, and external trade disruptions remain lingering constraints on broader regional growth.