Speech by 2M Tan See Leng at the SEMICON Southeast Asia (SEA) 2025 opening ceremony

Mr Ajit Manocha, President and CEO of SEMI,

Distinguished guests,

Ladies and gentlemen,

1. A very good morning to all of you. It is my pleasure to join you here at the opening ceremony of SEMICON SEA 2025.

   1.     SEMICON SEA is the region’s largest semiconductor industry event, where over 15,000 industry leaders and decision makers gather to connect and exchange insights that will help move the industry forward. As I was walking into this hall, Linda (SEMI) told me that more than 28,000 participants have signed up for this conference and she is rushing out additional passes and I think that one of her colleagues quipped that it would probably surpass 30,000 today. Congratulations and well done.

   2.     This year’s edition is all the more significant. Not only are we commemorating the event’s 30^th anniversary, we are also celebrating the event’s long-awaited return to Singapore in over a decade. A great homecoming to the very place where it first began.

2. The theme for this year’s event is “Stronger Together”, and there is certainly no better time than now for us to reaffirm the value of partnerships in the semiconductor industry.

3. For decades, the semiconductor industry has thrived on a globally integrated supply chain, with each country and each company having its own area of specialisation.

   1.     This had been enabled, facilitated by free trade, which contributed to the industry’s outsized growth. From 1990 to 2020, the global semiconductor industry grew at a compound annual growth rate of 7.5%, outpacing the 5% global GDP growth during the same period¹.

   2.     Southeast Asia in particular, has emerged as a key manufacturing hub for semiconductors, accounting for one-fifth of global chip exports in 2023². The region has also carved out its niche in back-end manufacturing, particularly in assembly and testing, and continues to build capabilities that allow it to move up the semiconductor value chain.

   3.     For Singapore, we have likewise established our own footing in both front-end and back-end manufacturing, as well as in the semiconductor equipment space. Today, we account for 1 in 10 chips and 1 in 5 chip-making equipment globally.

4. More recently, the economic rationale on which the global semiconductor supply chain had been founded on, has been overridden by geopolitical realities.

   1. The semiconductor industry is now in the eye of a global trade storm.

   2. For some time now, unilateral export restrictions have been imposed on advanced chips and related manufacturing equipment. There is now also the imminent possibility that tariffs targeted at semiconductors will be introduced.

   3. This has caused anxiety amongst companies, who are uncertain about the implications on demand for their products, as well as potential disruptions to their supply chains. Some are already putting investment decisions on hold.

5. Yet, we should not forget that this is an industry which – despite being highly cyclical – has historically demonstrated a capacity for resilience and great adaptability.

   1. You have consistently demonstrated the ability to adapt, to respond in a very agile manner, to changing market conditions, and maintained long-term prospects for growth. It was the case during the trade embargo in the late-1980s, the more recent global chip shortage in 2022, and I think you will be able to ride the uncertainties, and you will continue to remain on this growth path even as we speak today.

   2. So notwithstanding all the uncertainties, megatrends such as generative AI and industrial automation are expected to continue to drive and propel the industry towards continued growth, with increased demand for high performance semiconductors across various applications – be it in consumer electronics, EVs, or 5G connectivity. In ASEAN alone, the semiconductor market is expected to almost double by 2032³.

6. Given this operating context, Singapore will carry on with our work to strengthen existing partnerships and forge new alliances in two key areas. First, we will deepen integration with like-minded countries. Second, we will work closely with industry to prepare for growth through continued innovation and workforce development. Allow me to elaborate.

7. First, on deepening integration with like-minded countries.

   1.     Today, we have an extensive network of economic partners globally, many of which have bilateral agreements with Singapore and have collaborated with us to develop growth industries such as semiconductors.

   2.     We will build on our relationship with countries that are like-minded, that share our commitment to open and free trade, and we will continue to collaborate on areas across the semiconductor value chain, either bilaterally or through regional platforms. These could include providing companies access to new supply chains and end-markets, to help them navigate global developments.

8. These efforts, complemented by similar initiatives at the industry level, will serve us well in delivering strong economic outcomes for the industry. SEMI’s efforts in advocacy and public-private collaboration are industry-driven initiatives which are in spirit aligned with our commitment towards global partnerships and dialogue. I am happy that SEMI will be anchoring their international headquarters in Singapore to continue this good work.

9. Second, on collaborating with industry stakeholders to prepare for future growth, mainly through driving innovation and growing talent.

   1. The semiconductor industry thrives on innovation.

   2. That is why we are always casting a keen eye on emerging technologies, and developing world-leading capabilities in our ecosystem for the next bound of growth.

10. We have already taken decisive steps on this front.

    1. Earlier this year, we announced the establishment of a S$500 million R&D fabrication facility under the National Semiconductor Translation and Innovation Centre. This provides shared industry-grade infrastructure access for companies and researchers engaging in semiconductor R&D, starting with advanced packaging. 

11. And more of such partnership modalities are under way for other growth domains in semiconductors. Most recently, A*STAR has been working closely with companies on two new R&D platforms, which I am pleased to share more about today.

    1. One of the platforms is an open R&D line which A*STAR Institute of Microelectronics has set up for 200mm Silicon Carbide wafers. This is the world’s first industry-grade line of its kind, and is accessible for use by local companies, especially those serving the power electronics end-markets. Several companies have already benefited, such as WaferLead, a local startup that has used this R&D line to evaluate the performance of their silicon carbide wafers, and is now able to deliver higher quality wafers to their customers.

    2. Second, A*STAR has also built on its achievements under the piezoMEMS Lab-in-Fab initiative, to embark on Phase 2 of the project with STMicroelectronics, ULVAC, and the National University of Singapore. Phase 2 will focus on developing new piezoelectric materials and devices, which have the potential to be adapted for wide-ranging use, including in ultrasound imaging devices, miniature speakers, and smartphone cameras.

12. Besides innovation, another secret ingredient to securing growth for the semiconductor industry is talent availability. This is another area that we are heavily invested in, and have worked with our industry partners to develop.

    1. Our educational institutions, such as the Institute of Technical Education, play an instrumental role in helping to build a local talent pipeline for companies here. Our work thus far has yielded some positive results.

       1. One example of a local graduate who has benefited is Glendon Toh. Glendon began as a Production Technician in 2020 at packaging company United Test and Assembly Centre, or UTAC, under ITE’s Work-Study Diploma programme. Last year, he was promoted to Line Associate Engineer after good performance in optimising workflows and improving production yields.

       2. We are ramping up similar programmes so that graduates can benefit like how Glendon did. For example, in 2024, ITE and A*STAR IME signed MOUs with GlobalFoundries, Micron, and STMicroelectronics respectively, to offer student internships, staff attachments and promote joint projects.

    2. We are also actively pursuing talent from the region, while providing local employees the opportunity to gain work exposure beyond our shores. Given the global nature of semiconductor companies’ operations, it is crucial for employees to learn from a diversity of experiences beyond Singapore, from the region and globally. This not only enhances individuals’ career prospects, but also allows them to better contribute to the company’s and eventually, the country’s success.

       1. The Innovation Talent Exchange programme between Singapore and Vietnam is a good example of how we facilitate such learning. Under the programme, up to 300 Vietnamese and 300 Singaporeans each year will be able to take up tech and innovation job roles in each other’s country, including in semiconductors, for up to two years. I understand that companies and young talent from both countries have expressed early interest in the programme, and hope the take-up rate will continue to grow, and to grow exponentially.

13. In closing, let us never forget that partnerships anchored on trust and mutual benefit are critical ingredients for the continued growth of the semiconductor industry. For the road ahead demands that we move not as isolated entities, but as like-minded partners moving together. Only then, in unison, can we emerge “Stronger Together”. I thank SEMI for giving everyone the opportunity to learn, share, and network in this spirit, and here’s wishing all of you a productive, engaging, fulfilling and fruitful time at SEMICON SEA.

14. Thank you.

[1] BCG-SIA. “Strengthening the Global Semiconductor Supply Chain in an Uncertain Era”. May 2021.

[2] EAC International Consulting. Southeast Asia: Rising Pillar in Global Semiconductor Ecosystem. Jan 2025

[3] S&S Insider. ASEAN Semiconductor Market Size, Share, and Segmentation By Component, By Region, and Segment Forecasts 2024-2032. June 2023.