Chip industry doubles down on Singapore as production hub

  • Big Western chipmakers and related suppliers are moving to increase production in Singapore as they work to meet growth in demand in the medium to long term and spread their supply chain risks.
  • French substrate manufacturer Soitec will invest EUR400mn (USD430mn) to double the capacity of its wafer plant in Singapore, while U.S. semiconductor manufacturing equipment maker Applied Materials has broken ground on a new SGD600mn (USD450mn) plant in the city-state. Both plants are scheduled to be completed by 2024.
  • Soitec and Applied Materials are expanding production in Singapore in the hope of strengthening ties with chipmaking Asian customers.
  • U.S.-based contract chipmaker GlobalFoundries is also building a USD4bn in Singapore.
  • The logistics system in Singapore is efficient, allowing it to mesh well with customers in Taiwan, South Korea and Japan. The semiconductor industry accounts for 7% of Singapore’s gross domestic product.
  • Countries around the world are competing to attract chip-related companies. Singapore’s government is also working hard to lure investment by offering tax breaks and land, and supporting research and development.

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