Remarks by Minister for Trade and Industry (Energy and Industry) Dr Tan See Leng at VSMC Grand Opening Ceremony

Your Excellency Anneke Adema, Ambassador of the Kingdom of the Netherlands to Singapore,

Dr Tung Chen-Yuan, Representative, Taipei Representative Office in Singapore,

Mr Leuh Fang, Chairman, Vanguard International Semiconductor Corporation, and Visionpower Semiconductor Manufacturing Company,

Mr Rafael Sotomayor, President and Chief Executive Officer, NXP Semiconductors,

Distinguished guests,

Ladies and gentlemen,

Introduction

1. Good morning. It is a pleasure to be back here. It feels like just yesterday that I joined you for the groundbreaking of this facility less than two years ago. VSMC has since built the entire core-and-shell, fitted out the cleanrooms, installed sophisticated equipment, and is now preparing to begin production.

2. This is a remarkable pace of execution – a record for fab construction in Singapore, and fast by global standards too. I would like to thank VSMC’s engineers, technicians, contractors, suppliers, and public agencies for your hard work in bringing its new fab to life.

Capturing Growth Opportunities

3. The semiconductor industry is entering an unprecedented period of growth, and is set to double in size from 2025 to US$1.6 trillion by 2030.

4. Much of the attention today is on the most advanced logic chips that power artificial intelligence. But specialty semiconductors are just as essential.

a. Unlike leading-edge logic chips, where performance is driven largely by transistor density, specialty chips are optimised for specific functions and applications, such as managing power, sensing and controlling systems in vehicles and industrial equipment.

b. Demand for them is growing with trends such as electrification, connected devices, and industrial automation.

5. Singapore is well positioned to capture these opportunities. We have developed strong capabilities in specialty semiconductors over decades and VSMC will build on this foundation.

a. With a planned capacity of 44,000 wafers a month for 40 nm to 130 nm specialty nodes, the fab will produce chips for applications including embedded flash memory, power management, and automotive systems.

b. When fully ramped up, it will contribute significantly to Singapore’s semiconductor manufacturing capabilities and reinforce our role as a trusted node in the global semiconductor supply chain.

c. Its impact will also extend across our wider semiconductor ecosystem - creating opportunities for local suppliers across specialty chemicals and gases, equipment services, facilities and logistics.

Creating Good Jobs and Developing Local Talent

6. Ultimately, the significance of an investment like this is not only in the capital and technology it brings, but also the capabilities it builds and the opportunities it creates for our people. I am therefore encouraged by VSMC’s efforts to invest in our workforce and develop the talent needed for the future.

7. First, VSMC is expected to create 1,600 new jobs, of which 75 per cent will be professional, managerial, executive, and technician roles.

a. These include engineers, chemists and data scientists who will operate advanced manufacturing equipment, develop and fabricate wafers, and optimise manufacturing processes with automation.

b. These roles will give Singaporeans opportunities to build deep skills and meaningful careers in an important and growing industry.

8. Second, VSMC is helping to build a strong pipeline of local talent for the next generation.

a. The seven MOUs that VSMC recently signed with our polytechnics and universities cover partnerships ranging from internships and graduate hiring to curriculum co-development and joint applied research and innovation projects.

b. These partnerships will also provide students industry exposure through mentorship and learning journeys, helping students acquire skills that are directly relevant to advanced manufacturing and better understand the range of careers available in the industry.

9. Third, VSMC is creating more pathways for Singaporeans to enter the industry by participating in the Singapore Workforce Development Agency’s (SWDA) career conversion programmes and MOM’s graduate industry traineeships, also known as GRIT.

a. I am glad that VSMC plans to scale up its GRIT intake for engineering roles to 15 hires, in partnership with the SWDA.

b. These pathways will help both fresh graduates and mid-career workers enter semiconductor roles through structured training and on-the-job experience.

10. Together, these efforts will help ensure that the growth of Singapore’s semiconductor industry translates into good jobs and meaningful career opportunities. We look forward to VSMC’s continued partnership with our Institutes of Higher Learning, industry associations and Government agencies to help us strengthen the local talent base and equip our people to seize the opportunities from the industry’s next phase of growth.

Conclusion

11. On behalf of the Government, I would like to congratulate VSMC on the successful opening of new fab. What you have achieved in less than two years is a testament to the strength of this partnership. I look forward to deepening our partnership as you enter your next phase of growth in Singapore. May VSMC enjoy many years of success.

12. Thank you.