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Singapore’s AI Ambition: Expanding Semiconductor Capacity to Ride the Tech Wave
Singapore is expanding its semiconductor industry to attract tech giants and ride the AI wave, with top firms investing billions and innovative tactics driving growth.
TL;DR:
- Singapore is expanding its semiconductor manufacturing capacity by 11% to attract more AI and tech giants.
- The semiconductor sector employs 35,000 people and contributes 20% to Singapore’s manufacturing output.
- GlobalFoundries and other top firms are investing billions in Singapore’s wafer fabrication parks.
- The industry is set to grow from US$600 billion to US$1 trillion, driving demand for chips.
Imagine scrolling through this article on your phone or computer. Did you know that a tiny chip powers these devices and millions of others? Many of these chips are made in Singapore, and the country is now gearing up to expand its chip-making capacity. Let’s dive into Singapore’s ambitious plans to ride the AI wave by boosting its semiconductor industry.
Singapore’s Semiconductor Industry: A Powerhouse
Singapore’s semiconductor sector is a massive contributor to its economy. It employs about 35,000 people and makes up almost 20% of the country’s manufacturing output. With manufacturing being Singapore’s largest industry, the semiconductor sector plays a pivotal role in its gross domestic product (GDP).
Currently, nine out of the top 15 semiconductor firms have operations in Singapore. These include giants like American chipmaker Micron and German wafer manufacturer Siltronic. These companies are clustered in four wafer fabrication parks that span an impressive 374 hectares—that’s more than 500 football fields!
Expanding Capacity to Attract Tech Giants
To attract more top semiconductor giants and ride the artificial intelligence wave, Singapore is preparing 11% more land in its wafer fabrication parks. This new plot, part of which is in the eastern region of Singapore, will be ready by the end of 2024. Companies setting up there will enjoy customised roads and new water piping, making the deal even sweeter.
Chipmaking is a delicate process that requires stable power and water supply for constant cooling. These plants cannot be near MRT stations or other heavy industries due to mini vibrations that could affect production. Singapore’s strategic planning ensures these conditions are met, making it an ideal location for semiconductor firms.
GlobalFoundries: A Success Story
GlobalFoundries, the world’s third-largest contract chipmaker, has been in Singapore since 2010. It runs one of the largest wafer plants and can produce about 1.5 million 300mm wafers annually. Last year, the firm added 23,000 sqm—equivalent to about four football fields—of space to boost capacity amid a boom in demand.
Tan Yew Kong, senior vice president of GlobalFoundries, highlighted the crucial role of JTC, Singapore’s government industrial planner, in building their US$4 billion expanded fabrication plant. He emphasised Singapore’s 55-year history in the semiconductor industry and its ability to provide a robust network for materials and infrastructure.
“We are definitely here to stay, and looking at the market sentiment of regionalisation, friendshoring, all these approaches – definitely, having a location like Singapore to support the global footprint is a very necessary thing.”
- Tan Yew Kong, Senior Vice President, GlobalFoundries
Friendshoring refers to manufacturing and sourcing from countries with similar geopolitical stances. With the industry set to almost double from US$600 billion to US$1 trillion, building a factory in advance is crucial.
Innovative Tactics to Stay Competitive
As competition within the region heats up, Singapore is adopting innovative tactics to attract business. The Jurong Innovation District, which houses advanced manufacturing, urban solutions, and engineering startups, is a prime example. This district offers complimentary services like F&B, retail, and even childcare services to create vibrant estates where businesses and people can grow.
“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 Wei Loong, Group Director, JTC
The Future of Singapore’s Semiconductor Industry
Singapore’s strategic expansion of its semiconductor capacity is a testament to its commitment to staying at the forefront of the AI and tech wave. With top firms investing billions and the industry poised for significant growth, Singapore is positioning itself as a global hub for semiconductor manufacturing.
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- To learn more about Singapore’s semiconductor industry, tap here.
