Frasers Property, better known for its Singaporean malls and condominiums, is trying something else for its next project: An industrial park outside of Bangkok as it hopes to win companies trying to decouple their supply chains from China.

Announced earlier this week, the park named Araya, or “The Eastern Gateway,” is meant to attract high-end tech manufacturing to Thailand. Araya spans about 740 hectares and will house an industrial tech campus, a logistics park, and residential options. The total investment will amount to 20 billion baht ($592 million).

Frasers Property, No. 126 on Fortune’s Southeast Asia 500, will have a stake in the park through its Thai subsidiary, which in turn will own 50% of the project. The remaining half will be split evenly between Rojana Industrial Park Public Company and Asia Industrial Estate Company.

Infineon, which already has a production site in Thailand, will be one of the park’s first tenants. The German semiconductor firm announced earlier this year that it’s already started production on a new plant south of Bangkok, with production slated to begin in early 2026. 

Thailand as a 'China plus one' destination

Southeast Asia has benefited from a “China plus one” strategy, as companies invest in alternate manufacturing hubs to diversify their supply chains. Vietnam has been the main beneficiary of these shifts, but Malaysia and Thailand have also picked up interest. 

Chinese EV makers are investing in Thailand, which already has an established car industry. They also hope to use the country as a launchpad to expand into the rest of Southeast Asia. 

The Thai government is also hoping to attract more investment from semiconductor companies as it seeks to move up the chip value chain. The country already does have some presence in the semiconductor sector from companies like Infineon and Delta Electronics (Thailand).

Thailand is targeting 500 billion baht ($14.9 billion) in new investments in semiconductors by 2029, according to a Reuters report last week. 

In December, Thailand’s Board of Investment approved a $306 million investment from a Foxconn subsidiary to produce machinery parts and equipment for the chip sector.

Yet a more developed and advanced chip sector will need an ecosystem that includes chemical and equipment makers, a stable power supply, and a reliable logistics network. The hope from Araya’s backers is that the industrial park will be part of that effort. 

The joint venture will be an “integrated approach” to foster advanced manufacturing and logistics in Thailand, Kamonkarn Kongkathong, managing director of ARAYAs Land Development said. 

This story was originally featured on Fortune.com