What makes Singapore a prime location for semiconductor companies driving innovation?

Global demand for semiconductors continues to grow – and the market is expected to reach US$1 trillion between 2030 – 2032¹. The rise of artificial intelligence (AI) and electrification of vehicles are among the trends fueling the sector’s growth.

Singapore is already an integral part of the global semiconductor supply chain. We account for 10 per cent of all chips produced worldwide and approximately 20 per cent of global semiconductor manufacturing equipment production. We are also home to a diverse semiconductor ecosystem with research and development (R&D) and manufacturing activities across the semiconductor value chain – from integrated circuits design, and wafer fabrication to packaging and testing.

In Singapore, STMicroelectronics manufactures silicon carbide (SiC) chips – or third-generation semiconductors - for powering applications such as electric vehicles (EVs) and data centres. As AI adoption grows, data centres will need to cater to the power-hungry requirements of AI technology, further necessitating efficient power supply enabled by SiC chips. GlobalFoundries' Fab 7H, which opened in Singapore in September 2023, will produce image sensors and radio frequency chips integral to the next generation of smartphones and EVs.

Global semiconductor players can count on a robust ecosystem of semiconductor equipment companies and material suppliers, such as substrates companies that also perform R&D and manufacturing activities in Singapore.

Advanced Substrate Technologies (AST), a subsidiary of Japan’s TOPPAN Holdings, is constructing a facility – the first in Singapore – to produce high-end flip-chip ball grid array (FCBGA) substrates used in chips vital to AI applications such as custom processors and networking chips. US chip manufacturer Broadcom is supporting the establishment of the facility.
 

Singapore’s stability, efficient supply chain ecosystem and trusted intellectual property protection regime are among the factors that have attracted semiconductor investments here. Over the past 55 years, we have evolved from a hub for assembly and testing to a thriving semiconductor ecosystem encompassing chip design and wafer fabrication.

From investing in infrastructure and R&D to developing a highly skilled workforce to drive innovation and industry growth, here’s a look at how Singapore continues to grow its semiconductor industry.
 

1. Ensuring infrastructure readiness

Singapore invests in advance to build the required infrastructure, a strong public research ecosystem and a skilled workforce. For example, we have set aside vibration-tested industrial land required to support large-scale semiconductor manufacturing projects and invest in utilities infrastructure ahead of demand to ensure redundancies.
 

2. Commitment to talent development

Singapore’s semiconductor workforce numbers around 35,000. There are close partnerships between EDB, our Institutes of Higher Learning (IHLs), the Singapore Semiconductor Industry Association (SSIA) and industry partners to train a strong pipeline of relevant talent. Initiatives include:

• The Singapore Industry Scholarships (SgIS) and Industry Postgraduate Programme (IPP) to attract more youths to join the sector and to enable more technical experts to gain job engagements in the industry respectively. Specific to Integrated Circuit (IC) design, EDB is partnering SSIA to generate more interest amongst students via the IC Design Summer Camp, and to bridge capabilities between academia and industry needs by a six month IC design training programme co-developed by the National Technological University (NTU) and the industry.
• There are pre-employment training and career conversion programmes targeting mid-career workers, conducted in partnership with SSIA, industry players and IHLs.
• Industry players anchored in Singapore continue to partner with IHLs to train and prepare youth for semiconductor careers. In 2023, Micron signed a MoU with five local polytechnics in Singapore for a wide ranging partnership, which includes provisions of more internships, scholarships and bursaries to students, and also assistance to train and expose teaching staff to advanced semiconductor manufacturing. In 2024, ITE signed MoUs with Globalfoundries, Micron, STMicroelectronics and Agency for Science, Technology and Research (A*STAR)’s Institute of Microelectronics (IME) for student internships, staff attachments and joint projects.
   

3. Continuous investments in R&D and innovation

Semiconductors is a highly innovative sector and continuous investment in R&D is critical.  The Singapore government has made sustained investments over the past decades in our Research, Innovation and Enterprise (RIE) 2025 plan. In Budget 2024, Singapore announced a S$3 billion top-up to RIE 2025. In total, about S$28 billion over five years will go towards growing the overall R&D ecosystem in Singapore. The funds will support both the public and private sector, including collaborative R&D projects between the two sectors.

Semiconductor R&D, the development of new chip designs, manufacturing processes and equipment, is a key focus area. Here are the microelectronics research pillars for Singapore in the medium to long term are:

• Heterogenous integration (e.g. Applied Materials and A*STAR's IME Centre of Excellence in Advanced Packaging; NUS’ Singapore Hybrid-Integrated Next-Generation µ-Electronics Centre (SHINE)), which looks at packaging chips to enable faster performance and smaller form factors.
• Wide bandgap semiconductors (e.g. 200mm SiC Pilot Line and National GaN Technology Centre), devices that will enable applications such as EVs.
• Sensors and actuators (e.g. STMicroelectronics and IME’s MEMS Lab-in-Fab), devices in our daily life which monitor conditions, signals before triggering responses.
• Other areas including mmWave and beyond, edge AI, and advanced photonics (e.g. National Semiconductor Translation and Innovation Centre).

4. Building a reliable and resilient ecosystem of partners and suppliers

In Singapore’s semiconductor industry, local enterprises work with global companies as solution providers or co-development partners, particularly in the areas of spares, facilities and sustainability solutions. These partnerships allow local enterprises to accelerate capability building, which in turn strengthens the resilience of the ecosystem.

To facilitate more collaborations, the government has enhanced the Partnerships for Capability Transformation (PACT) scheme, to support additional partnership modalities between multinational corporations (MNCs) and local enterprises in capability training, internationalisation and corporate venturing, in addition to existing support for supplier development and co-innovation. Global Foundries, the world’s third-largest chipmaker has partnered with local additive manufacturing enterprise – Forefront AM – for timely and efficient equipment repairs. Local precision engineering ELH Additive Manufacturing, also successfully ventured into additive manufacturing for metal and polymer materials, and works with MNCs across industries such as aerospace, defence and semiconductor manufacturing.

 

Semiconductor companies are among the enterprises that have pioneered and used advanced technologies like AI and automation to be more efficient and competitive in their manufacturing operations. For example, GlobalFoundries and STMicroelectronics are using AI predictive maintenance, aiming to substantially reduce production tool downtime.  Micron and Infineon are also part of the coveted World Economic Forum’s Global Lighthouse Network, in recognition of efforts undertaken within their Singapore operations to scale Fourth Industrial Revolution technologies. Singapore is further catalysing AI activities here through an investment of more than S$1 billion over the next five years into AI compute, talent and industry development. This includes putting in place enablers to support companies seeking to use GenAI to unlock productivity gains or to implement customised GenAI applications with tech partners to meet their business needs.
 

5. Supporting manufacturers to operate more sustainably

Singapore is already partnering with manufacturers to implement best-in-class greenhouse gas abatement and energy efficient systems. Beyond such efforts, companies are piloting novel emission abatement solutions to achieve further decarbonisation. STMicroelectronics for instance is working with SP Group on Singapore's largest industrial District Cooling System, to cool one of STMicroelectronics’ manufacturing plants and its office areas. When ready in 2025, it will help STMicroelectronics achieve 20 per cent savings in annual cooling-related electricity consumption, and reduce ST’s carbon emissions by up to 120,000 tonnes per year.​ Singapore is also improving access to cleaner energy – through regional power grids that will facilitate the import of low-carbon electricity and exploring low-carbon alternatives such as hydrogen, geothermal and carbon capture, utilisation and storage. Read more.
 

Read about the latest semiconductor investments in Singapore

Jul 2023: Semiconductor heterogenous integration startup Silicon Box unveiled its S$2 billion advanced semiconductor manufacturing foundry.

Sep 2023: GlobalFoundries officially opened its new ~US$4 billion (S$5 billion) wafer fab facility in Singapore focused on end-markets such as automotive, 5G mobility and secure devices.

Mar 2024: AST, a Singapore-based subsidiary of TOPPAN Holdings Inc., broke ground on a Singapore facility to produce high end substrates and develop advanced technologies to meet global demand.

Jun 2024: VisionPower Semiconductor Manufacturing Company, a joint-venture between Vanguard International Semiconductor Corporation and NXP Semiconductor, announced that it will build a ~US$7.8 billion (S$10.5 billion) wafer manufacturing plant in Singapore for automotive, industrial, consumer and mobile device markets.

Siltronic opened its new S$2.9 billion production facility for 300mm wafers, making Singapore its largest production site globally. Hear from CEO Dr Michael Heckmeier on what makes Singapore a strategic partner for Siltronic.

Pall Corporation, opened a new US$150 million (S$202 million) state-of-the-art facility in Singapore to produce microelectronics filters for advanced node semiconductor manufacturing.

MediaTek has committed to investing S$500 million in Singapore over the next five years. This will go towards furthering R&D capabilities in next-generation system on chip (SoC) technologies.
 

Discover what Singapore offers manufacturers seeking a go-to-market strategy for Southeast Asia. Download our advanced manufacturing guide today.
 

¹Quinn, Stephanie. “SEMICON West: Stronger Together”. In Business, 30 Jul 2024.