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Written reply to PQ on competitiveness and health of Singapore's wafer fabrication and semiconductor industry cluster

3 July 2017

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Question :

Mr Leon Perera: To ask the Minister for Trade and Industry (Industry) (a) whether he can provide an update on the competitiveness and health of Singapore's wafer fabrication and semiconductor industry cluster; and (b) what measures are being taken to maintain and enhance the competitiveness of wafer fabrication in Singapore versus other competing global locations for fabs.


Written reply:

  1. Singapore has a well-established semiconductor cluster, with leading global firms in Integrated Circuit (IC) design, wafer fabrication, as well as assembly and test, supported by an ecosystem of equipment vendors and suppliers.  Between 2011 to 2016, the manufacturing output from our semiconductor cluster grew at a Compound Annual Growth Rate (CAGR) of 4.3%[1].  Singapore continues to be an attractive location for high-value semiconductor manufacturing activities.  For example, last September, Micron opened its expanded 3D NAND flash memory fabrication facility in Singapore, an investment totalling S$5.4 billion that will create 500 new skilled jobs.

  2. New end-applications, such as industrial internet-of-things and autonomous vehicles, will continue to drive strong demand for semiconductors and present growth opportunities for Singapore.  Under the Research Innovation Enterprise 2020 (RIE2020) Plan, we have set aside S$3.2 billion for Advanced Manufacturing & Engineering to support key industry sectors including Electronics.  The government has also been partnering companies in the adoption of advanced manufacturing technologies to increase productivity.  For example, Infineon recently announced a S$105 million investment to transform its Singapore manufacturing facility into a Smart Factory, with automated guided vehicles to transport chips across the facility. 

  3. The government will continue to support our workforce to acquire the relevant skillsets to benefit from the new job opportunities.  For instance, we are working closely with the industry, trade associations and unions to co-develop a Skills Framework for the Electronics industry, which will map out career pathways, job roles, requisite skills and wages.  This framework will facilitate skills recognition, and support the design of targeted training programmes for skills and career development.

  4. These efforts are part of our Industry Transformation Map (ITM) to strengthen the competitiveness of the Electronics industry.  The Electronics ITM will be launched later this year.

[1] Nominal growth; based on Economic Development Board Census of Manufacturing Activities

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