The export value of electronic products for the first two months this year rose a robust 29.8 per cent from the corresponding period a year ago.

Electronic products account for 22 per cent of Thailand's export earnings.

In 2005, electronics exports shot up 15.6 per cent year on year to $22.31 billion, which represented 15.8 per cent of the country's gross domestic product.

Last year the industry created over 500,000 jobs in the country, KRC calculated.

The research house forecast that electronics manufacturing growth worldwide this year would rise 7.5 per cent year on year, and the Semiconductor Industry Association predicted that semiconductor demand would rise 7.6 per cent from the level achieved in 2005.

Despite the bullish outlook, there are many risk factors for the industry as a whole.

The rapid pace of new technology is a major concern for the local industry because Thai electronic-product manufacturers rely on technology from overseas as the country lacks research-and-development units.

A shortage of skilled labour is also another consideration, the report said.

The falling price per unit of electronic goods has forced manufacturers to produce in higher volume to create economies of scale, and this is likely to create a problem of oversupply.

Rising interest rates will also increase the financial burden on manufacturers, and stringent import regulations may crimp Thailand's export markets.

The research house urged the government to eliminate problems for the industry, improve manufacturing competitiveness and facilitate research and development.