Thailand must accelerate its transformation towards Industry 4.0, from traditional manufacturing to a regional hub for smart production, to remain globally competitive through the integration of artificial intelligence (AI), semiconductors, and photonics technology, according to a leading manufacturer of optical and photonic products.
"Thai manufacturing cannot remain anchored to traditional methods, or it will fall behind in the shift to Industry 4.0," Prong Kongsubto, senior director -- chief of staff and external affairs, at Lumentum, said yesterday at a seminar at Nepcon Thailand 2025, an electronics manufacturing event being held in Bangkok.
Industry 4.0 does not involve just Internet of Things or automation, but is also about connected intelligence systems, data analytics, real-time decision-making, and the convergence of digital systems with production systems, he said.
"Industry 4.0 is a survival path for Thai manufacturing. This transformation requires the integration of three critical technologies: AI serving as the brain for learning, analysis, and decision-making; semiconductors, functioning as the nervous system to detect signals and control machinery; and photonics, acting as the circulatory system that transmits data at the speed of light to enable seamless connectivity," said Mr Prong.
If these three technologies can be effectively integrated, Thai factories will evolve beyond production lines to think, analyse, and respond in real time, he said.
Farmers will utilise sensors and AI to forecast yields and improve animals' quality of life, while logistics and energy systems will become more precise, secure, and efficient.
"All stakeholders must work together to develop flexible policies, increase targeted R&D investments, and cultivate an ecosystem that connects SMEs, startups, universities, and industry. If successful, Thailand will not only keep pace, but will lead," Mr Prong added.
For example, Thailand will be able to lead in exporting optical sensor platforms for use in smart agriculture, or supplying optical modules to enhance AI processing.
Mr Prong said challenges remain, particularly for the Thai manufacturing sector, in which 85% of companies are small and medium-sized enterprises (SMEs).
SMEs are still reliant on labour and are not connected with data on a real-time basis.
Mr Prong said the transformation involves changing all working processes, as has happened in developed countries which have adopted semi-automation systems.
AI and machine learning are enabling factories to analyse problems, make predictions, and make proactive decisions, such as through real-time quality inspection and predictive maintenance, Mr Prong added.
Thailand has welcomed investments into hyperscale data centres that process AI, so AI is something that the country is already familiar with, he said.
Moreover, the wider adoption of AI also drives demand for photonics technology as data centres rely on optics and photonics from fibre optics, transceivers, and signalling.
Photonics is a vital technology used in light-based communication systems such as fibre optics. It forms the backbone of connectivity for data centres, AI systems, 5G networks, and smart factories.
Thailand is emerging as a global producer of photonics modules and systems, particularly in the communications and automotive industries.
It is estimated that the global photonics market has a growth opportunity of over 25%, rising from US$10 billion in 2024 to $30 billion in 2029.
Semiconductors are at the heart of connectivity. Every component in a smart industrial system -- from sensors and control chips to wireless communication devices -- relies on them. Thailand has strong potential in semiconductor manufacturing, testing and packaging, as well as in the development of advanced sensors.
These technologies can be widely applied across agriculture, industry, and renewable energy sectors.