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The Economic Development Board (EDB) has identified several new growth areas, including green electronics, bio-electronics, plastic electronics, blockchain technology and security. Over the next three to five years, they are expected to account for 30% of Singapore’s electronics output.
As Singapore is looking to increase the value of its electronics manufacturing, it is investing substantial resources to build up advanced manufacturing capabilities to add competitive edge to the electronics value chain. Otherwise known as Industry 4.0, this ‘fourth industrial evolution’ marks the beginning of a journey that will enable local players to offer transformative manufacturing services.
• Semiconductors
Singapore has an enduring relationship with the semiconductor industry going back to 1968 when National Semiconductor set up its  rst test facility. From this modest beginning, it is now the biggest sector in Singapore’s electronics cluster, with diverse activities extending across the value chain, including integrated circuit (IC) design, wafer fabrication, assembly and tests, and manufacturing of equipment and substrate. The world’s top three wafer foundry companies, top three sub- contract assembly-and-test companies, and top four fabless IC design companies all have facilities in Singapore.
Singapore’s semiconductor manufacturing output more than doubled in  ve years to over S$100 billion in 2018 on the back of robust global demand from the server, personal computer, industrial and automotive markets, accounting for 76% of the electronics industry’s output. Between 2008 and 2018, the industry grew at a compound annual growth rate (CAGR) of over 8%, increasing its share of Singapore’s manufacturing output from 15% to 28% respectively over the period.
In spite of immediate challenges, the longer term outlook for semiconductors is bright. Chips are becoming increasingly ubiquitous. Not only are they found in the usual suspects like the computers and mobile phones, they are increasingly being embedded in lamp posts, postal boxes and refrigerators intelligence to things to inanimate devices, enabling them to communicate with each other.
In 2018, global sales of semiconductors, including integrated circuits, optoelectronics, sensors and discrete, rose 10% to reach a record high to surpass the one trillion unit mark for the  rst time. In a statement, John Neuffer, Semiconductor Industry Association (SIA) president and chief executive, wrote, “Global demand for semiconductors reached a new high in 2018, with annual sales hitting a high- water mark and total units shipped topping 1 trillion for the  rst time. Market growth slowed during the second half of 2018, but the long- term outlook remains strong.”
For 2019, a further 7% increase is expected. If the forecast growth is achieved, the industry would have an enviable CAGR of 9.1%, from 32.6 billion units in 1978 to 1,142.6 billion in 2019.
Companies are gearing up for the future by expanding their footprint in Singapore. At

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