Singapore is still a powerhouse in global semiconductor race by ‘being indispensable’
· The IndependentSINGAPORE: Singapore may not be making the world’s most advanced chips, at least at present, but it’s still one of the most important links in the global semiconductor supply chain.
Singapore produces about one in every 10 chips worldwide and accounts for roughly 20% of global semiconductor equipment output. The sector contributes around 6 per cent of the country’s Gross Domestic Product (GDP) and supports more than 35,000 jobs.
As demand for semiconductors grows due to artificial intelligence (AI), electric vehicles and connected devices, competition for investment is becoming fiercer across Asia. Industry leaders say Singapore’s challenge isn’t staying relevant today, but ensuring it remains relevant tomorrow, Channel NewsAsia (CNA) reports (June 12).
A semiconductor hub built over decades
Singapore’s semiconductor story began in 1968 when multinational companies started manufacturing here. Since then, the industry has expanded far beyond assembly lines.
Today, Singapore hosts companies across the entire semiconductor chain, from chip design and wafer fabrication to packaging, testing, and equipment production.
Major global firms such as Broadcom, Marvell Technology, Qualcomm, and MediaTek have operations in Singapore. Manufacturing giants, including GlobalFoundries, Micron Technology, and United Microelectronics Corporation, also operate fabrication plants here.
According to Ang Wee Seng, Executive Director of the Singapore Semiconductor Industry Association, this broad ecosystem remains one of Singapore’s biggest strengths.
Singapore focuses on being essential
Singapore has built expertise in mature and specialised chips that prioritise reliability, stability and manufacturing quality. These chips are found in products people use every day, from cars and home appliances to industrial robots and Wi-Fi equipment.
Mr Ang said Singapore’s advantage comes from focusing on areas where dependable production and supply chain strength matter most. This strategy is also why global companies continue investing here.
“We are very strong when it comes to speciality, mature and differentiated technology nodes, where reliability, yield, quality and ecosystem depth really matter,” Mr And said.
“We compete in the right lanes, not so much by copying what the bigger hubs are doing today … but by being indispensable … and more importantly as a trusted supply chain resilience hub,” he added.
Businesses need reliable suppliers just as much as they need breakthrough technology. In many ways, Singapore has become the steady hand of the semiconductor industry. It focuses on being essential.
Singapore cannot rely solely on attracting foreign investment
Being essential, however, doesn’t always mean a guarantee. Countries across Asia are also rolling out incentives, building industrial parks and competing aggressively for semiconductor investments.
Land costs, energy supply, water resources, and skilled workers all play a part in where companies decide to build their next facility.
Mr Ang noted that Singapore’s response cannot rely solely on attracting foreign investment. Local talent, research capabilities, and homegrown companies must also continue to move up the value chain. This is particularly important in emerging areas such as advanced packaging, power electronics and photonics, where future growth opportunities are expected.
Investing in local talent and innovation
Singapore is already placing a substantial bet on research and development. The government has committed S$37 billion under its Research, Innovation and Enterprise (RIE) 2030 plan to strengthen capabilities in key sectors, including semiconductors.
Speaking at the opening of a new manufacturing facility by Applied Materials in Tampines, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said investments should strengthen Singapore’s role in global supply chains while creating quality “good jobs.”
The company’s US$500 million (S$643 million) facility is expected to create around 1,000 jobs and support areas such as automation, digitalisation, and AI-enabled manufacturing.
Partnering instead of competing with rivals
One of the more interesting points Mr Ang raises is that Singapore shouldn’t see every neighbouring country as a rival. As Southeast Asia attracts growing semiconductor investment, he believes the region can become stronger through cooperation rather than competition.
Singapore’s role, he said, could be to connect capabilities across the region and help attract investments that benefit Southeast Asia as a whole, as no single country controls the entire process. Success increasingly depends on partnerships, specialised expertise and dependable supply chains.
Staying relevant to secure investments and protecting high-value jobs
Semiconductors may not be as interesting compared with AI chatbots or electric cars, yet they power almost every piece of modern technology.
So staying relevant in this sector means more than securing factory investments. It means protecting high-value jobs, attracting research talent and ensuring the country stays connected to one of the world’s most important industries.
Singapore’s approach is to focus on doing critical things exceptionally well and making itself difficult to replace, which is what has kept the Little Red Dot in the semiconductor game for nearly six decades.
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