Siltronic, a German manufacturer of silicon wafers, has significantly increased its presence in Singapore by inaugurating a new wafer plant worth €2 billion (approximately S$2.9 billion) on June 12, 2024. This facility, covering 150,000 square meters, is the company’s third production site in Singapore, strategically located adjacent to its existing operations in the Tampines Wafer Fab Park. With this addition, Siltronic’s total manufacturing footprint in Singapore now spans 300,000 square meters.

The new plant is set to produce 300-mm wafers essential for semiconductor chip manufacturing, with a projected monthly output of around 100,000 wafers by the end of the year. This expansion is expected to create over 600 new jobs by 2028, ranging from research to engineering positions.

Deputy Prime Minister Heng Swee Keat, who attended the launch, highlighted the significance of this facility as part of Singapore’s ongoing collaborations with global semiconductor firms. He stated, “This Fab-Next facility, Siltronic’s latest and largest investment in Singapore, will add to the vibrancy and competitiveness of Singapore’s semiconductor ecosystem and create good jobs for our people.”

Notably, this facility will be the first in Singapore to feature silicon wafer epitaxy capabilities, a process that enhances the electrical conductivity of wafers. This technology is crucial for producing advanced chips used in personal computers, smartphones, and artificial intelligence (AI) servers, as explained by Siltronic CEO Michael Heckmeier.

Addressing concerns regarding the current weak demand for semiconductor chips, Heckmeier acknowledged the sector’s cyclical nature. He described 2024 as a transitional period and expressed optimism for a significant rebound next year, driven by major trends such as AI, electromobility, and digitalization.