17-7-2024 (SINGAPORE) In the ever-evolving world of technology, a tiny disc-shaped wafer lies at the heart of countless electronic devices, powering our mobile phones, computers, and millions of other gadgets. Interestingly, many of these vital chips are manufactured right here in Singapore – a hub for semiconductor giants, and now, the nation is gearing up to expand its footprint in this crucial industry.
According to the government’s industrial planner JTC, Singapore is actively preparing an additional 11 percent of land in its wafer fabrication parks, a strategic move aimed at attracting more top semiconductor companies and riding the wave of artificial intelligence (AI) innovation.
The semiconductor sector in Singapore is a powerhouse, employing over 18,000 individuals and contributing nearly 20 percent to the country’s overall manufacturing output. Manufacturing, in turn, is Singapore’s largest industry, accounting for more than 20 percent of its gross domestic product.
Currently, nine out of the top 15 semiconductor firms have established a presence in Singapore, drawn by the nation’s business-friendly environment and advanced infrastructure. These companies include American chipmaker Micron and German wafer manufacturer Siltronic, which recently opened a S$2.9 billion (US$2.16 billion) advanced manufacturing facility in Tampines.
The existing wafer fabrication parks, spanning an area equivalent to more than 500 football fields, are strategically located in Pasir Ris, Tampines, Woodlands, and the North Coast. JTC, as the master planner and developer, is orchestrating the expansion, with the new plot, partially situated in the eastern region, set to be ready by the end of the year.
To sweeten the deal for prospective semiconductor companies, JTC is offering customized roads and new water piping infrastructure within the expanded fabrication parks. These specialized amenities are crucial for chipmaking, an intricate process that requires a stable power and water supply for constant cooling. Additionally, the fabrication plants must be located away from potential sources of vibration, such as MRT stations or heavy industries, to ensure uninterrupted production.
GlobalFoundries, the world’s third-largest contract chipmaker, has been a prominent player in Singapore’s semiconductor industry since 2010. Operating one of the largest wafer plants in the country, GlobalFoundries can produce approximately 1.5 million 300mm wafers annually.
In response to the surging demand, the company expanded its footprint last year by adding 23,000 square meters – equivalent to about four football fields – to boost capacity.
GlobalFoundries manufactures integrated circuits on wafers designed for smart mobile devices and markets such as automotive, aerospace, and defense. Among its biggest customers are semiconductor companies like Qualcomm.
Tan Yew Kong, the senior vice president of GlobalFoundries, acknowledged JTC’s pivotal role in building the company’s US$4 billion expanded fabrication plant. He emphasized Singapore’s 55-year history in the semiconductor industry, which has provided a robust network for supplying materials and infrastructure.
“We are definitely here to stay, and looking at the market sentiment of regionalization, friendshoring, all these approaches – definitely, having a location like Singapore to support the global footprint is a very necessary thing,” Tan added.
Friendshoring, a term referring to manufacturing and sourcing from countries with similar geopolitical stances, has become an increasingly relevant concept in the industry.
Tan also highlighted the industry’s projected growth from US$600 million to US$1 trillion, underscoring the importance of building factories in advance to meet future demand. “We are pacing ourselves so that when the market is there, our toolsets are all turned on, ready for it. The good news is that actually, our tools are here. We just need to fire it up and get it ready,” he said.
As regional competition intensifies, Singapore has embraced additional tactics to attract businesses. One such approach is taking root in the Jurong Innovation District, a business park dedicated to advanced manufacturing, urban solutions, and engineering startups.
According to Wong Wei Loong, JTC’s group director, the organization provides complimentary services in the Jurong Innovation District, including food and beverage offerings, retail services, and even childcare facilities. “We hope by doing so, we create vibrant estates in which our businesses and people can grow, and that is very important to help grow future industries,” Wong explained.
