SINGAPORE: Every smartphone, laptop, electric vehicle and artificial intelligence system runs on semiconductors.As the global race for semiconductors intensifies, Singapore is under pressure to maintain its competitive edge.The country produces about one in every 10 chips worldwide and accounts for around one-fifth of global semiconductor equipment output. The industry contributes about 6 per cent of Singapore's gross domestic product and employs more than 35,000 people.While the ongoing technology rivalry between the United States and China has reshaped global supply chains, Singapore has benefited from companies seeking to diversify their operations across Asia.
But industry experts warn that maintaining the country's position will require continued investment in innovation and talent.EMBEDDED ACROSS THE ENTIRE SUPPLY CHAINSingapore's semiconductor industry dates back to 1968, when multinational chipmakers began setting up manufacturing operations here.Over the decades, it has evolved from assembly and testing operations into an ecosystem spanning chip design, manufacturing, packaging, testing and equipment production.Mr Ang Wee Seng, executive director of the Singapore Semiconductor Industry Association, said one of Singapore's key strengths is the breadth of its semiconductor ecosystem.For example, US chip designers Broadcom and Marvell have design and research operations in Singapore. Qualcomm, also headquartered in the US, and Taiwan's MediaTek are among other global chip companies with a presence here.Further down the value chain, US-headquartered GlobalFoundries and Micron, as well as Taiwan's United Microelectronics Corporation (UMC), operate wafer fabrication plants, producing chips for industries ranging from automotive to AI.Singapore is also home to four of the world's top 10 outsourced semiconductor assembly and test providers – a segment that is growing increasingly critical as chips get more complex.
