Singapore is poised to leverage the ongoing chip industry upswing to bolster its local semiconductor sector, according to Minister of State for Trade and Industry, Alvin Tan, during a speech on July 23, 2024.

After a challenging year marked by weak consumer demand that saw the global semiconductor industry enter a downcycle, Tan highlighted a promising rebound in 2024, driven by increasing demand for consumer electronics such as smartphones and PCs. He emphasized the importance of capitalizing on this momentum to ensure continued growth in Singapore’s semiconductor industry, addressing industry stakeholders at an event organized by the Singapore Semiconductor Industry Association (SSIA).

Tan pointed out that Singapore’s semiconductor sector starts from a position of strength, asserting the Republic’s critical role in the global chip supply chain. The country currently accounts for 5% of semiconductor wafer fabrication capacity and contributes 20% to semiconductor equipment output.

He noted that major semiconductor companies continue to invest in Singapore, attracted by the robust and diverse ecosystem of suppliers and the availability of skilled talent. These longstanding partnerships with global leaders are vital for creating high-quality jobs for Singaporeans.

However, Tan warned that Singapore must not become complacent, as competition for investments in the semiconductor sector intensifies globally. He stated, “Competition for investments will be ever stiffer… We must continue to maintain our edge and secure our share of the growing pie.”

The government has set an ambitious goal to expand the manufacturing sector by 50% by 2030 as part of its Manufacturing 2030 strategy. To support this growth, initiatives like the Partnerships for Capability Transformation scheme aim to foster collaboration between small and medium-sized enterprises (SMEs) and large multinationals, helping smaller firms scale and reach global markets.

Furthermore, Tan emphasized that collaborative efforts extend beyond Singapore’s borders. Trade missions and networking opportunities facilitated by Enterprise Singapore are designed to help SMEs expand their operations internationally.