Bangkok:As Bangkok grapples with sinking 2 cm annually, Thailand confronts a complex global AI chip strategy, with its role largely limited to "cost-plus" participation in the AI supply chain.

According to Thai News Agency, the Thai economy and society are dealing with significant challenges: environmental crises from climate change and the global impact of advances in artificial intelligence (AI). Dr. Supavud Saichue has highlighted these issues during an interview, focusing on Bangkok's flooding impact on GDP and the structure of the global AI supply chain.

The severe flooding in Bangkok, with water levels reaching up to 80 centimeters in some areas, has caused substantial property damage. While short-term GDP figures may appear bolstered by recovery activities, the long-term impact on agriculture, such as waterlogged durian and mangosteen trees, results in permanent GDP losses. Complicating matters, Bangkok is sinking due to structural weight on soft clay soil, combined with rising sea levels from global warming.

Despite proposals to relocate the capital, such a move is deemed impractical given Bangkok's economic significance, contributing up to 40% of Thailand's GDP and holding 60% of the country's property value.

In terms of AI technology, Thailand's position in the supply chain is primarily downstream, involved in assembly, testing, and packaging. Although involved in various sectors such as hard disk drives and optical transceivers, Thailand operates under a cost-plus revenue model, limiting its economic gains. The Lumentum factory in Thailand exemplifies this, with employment and revenue generated locally, but most profits and intellectual property controlled by overseas parent companies.

Thailand is urged to develop systematic plans to address both environmental and technological challenges, aiming to create intellectual property and transfer technology to secure real economic growth in the future.