Singapore Prepares More Land To Woo Semiconductor Giants Looking To Ride AI Wave
JTC is preparing 11% more land in Singapore’s wafer fabrication parks, which will be ready by the end of 2024 — boosting the country’s semiconductor standing.
Source: CNA
If you are using your mobile phone or computer to read this article, you may not know that a tiny chip powers them, along with millions of other electronic devices. Many of these chips are made in Singapore – and now, the country is looking to expand its chip-making capacity.
Government industrial planner JTC told CNA that it is preparing 11% more land in Singapore’s wafer fabrication parks, in a bid to attract more top semiconductor giants and ride the artificial intelligence wave. The semiconductor sector employs about 35,000 people and accounts for almost 20 per cent of the country’s manufacturing output.
Manufacturing is Singapore’s largest industry by far, representing a significant component of its gross domestic product – more than 20%. Currently, nine out of the 15 top semiconductor firms have set up shop in Singapore.
They include American chipmaker Micron and German wafer manufacturer Siltronic, which opened a S$2.9 billion (US$2.16 billion) advanced manufacturing facility in Tampines last month. These semiconductor firms are currently clustered in four wafer fabrication parks that span 374 ha, the size of more than 500 football fields.
These parks are in Pasir Ris, Tampines, Woodlands and the North Coast, with JTC being the master planner and developer of the land. JTC said the new plot, part of which is in the eastern region of Singapore, will be ready by the end of the year.
Companies looking to set up there will be able to get customised roads and even new water piping, which helps to sweeten the deal. As chipmaking is a delicate affair, semiconductor fabrication plants need to be close to stable power and water supply for constant cooling. They cannot be near MRT stations or other heavy industries due to mini vibrations that could affect production.
Expansion Of Facility To Boost Capacity
GlobalFoundries, the world’s third-largest contract chipmaker, has had a presence in Singapore since 2010. It runs one of the largest wafer plants here and can produce about 1.5 million 300mm wafers annually. Last year, the firm added 23,000 sqm – equivalent to about four football fields – of space to boost capacity amid a boom in demand.
The company manufactures integrated circuits on wafers designed for smart mobile devices and markets like automotive, aerospace and defence. Some of its biggest customers include semiconductor companies such as Qualcomm. JTC played a “very key role” in building GlobalFoundries’ US$4 billion expanded fabrication plant, said its Senior Vice President Tan Yew Kong. He told CNA that Singapore, which has 55 years of semiconductor history, was able to provide a network to supply materials and infrastructure.
“We are definitely here to stay, and looking at the market sentiment of regionalisation, friendshoring, all these approaches – definitely, having a location like Singapore to support the global footprint is a very necessary thing,” he added.
Friendshoring refers to the act of manufacturing and sourcing from countries with similar geopolitical stances. Mr Tan pointed out that the industry is set to almost double from US$600 billion to US$1 trillion, which means building a factory in advance is “very important”.
“We are pacing ourselves so that when the market is there, our toolsets are all turned on, ready for it. The good news is that actually, our tools are here. We just need to fire it up and get it ready,” he added.
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