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 Continued strong growth of the semiconductor industry
At the Singapore Semiconductor Industry Association (SSIA) Semiconductor Business Connect 2022, held on 19 May, MOS Alvin Tan highlighted that continued strong growth of the semiconductor industry can be seen both globally and locally, fuelled by new tech applications like 5G, AI, cloud computing, the Internet of Things (IoT), and a strong demand for consumer electronics and digital services during the pandemic.
Despite shorter-term risks of disruptions to supplies of raw materials and equipment due to the conflict in Ukraine and lockdowns in China, the overall outlook for the semiconductor industry is very positive – the global market for semiconductors is projected to continue growing to reach US$1 trillion over the next decade, which is more than double the size of the semiconductor market in 2021.
In Singapore, semiconductor manufacturing contributes more than 80 percent of the electronics manufacturing output and 7 percent of the nation’s GDP. Semiconductor continues to be the fastest growing segment of the electronics industry, with output projected to increase 30 percent year-on-year in 2021.
Today, Singapore accounts for 11 percent of the global semiconductor market. Some 20 percent of global semiconductor equipment is manufactured in Singapore. Singapore’s semiconductor industry is poised for further growth, with around 2,000 more jobs expected to be created in the next 3 to 5 years.
As part of Singapore’s Manufacturing 2030 vision to become a global business, innovation,
and talent hub for advanced manufacturing, Singapore aims to anchor frontier investments from global companies with specialised capabilities to support its local manufacturing ecosystem.
workers have the right skills to benefit from the opportunities in this sector.”
Another major priority in the efforts to grow the semiconductor industry is sustainability. The semiconductor industry plays a critical role in Singapore’s green transformation. Information and computing technology are projected to consume up to 20 percent of global energy demand by 2030, with chip manufacturing accounting for most of its carbon footprint. The industry can collectively make an impact on climate change, by making decisive and concerted actions to embrace sustainability and drive change.
The green transformation presents exciting economic opportunities for semiconductor companies. Companies that are able to reinvent themselves to harness sustainability as a competitive edge can become more efficient, reduce costs, and better meet their shareholders’ and customers’ expectations.
The Government will support companies on this journey towards more sustainable practices. “Under the Urban Solutions and Sustainability (USS) domain of our S$25 billion Research, Innovation and Enterprise 2025 (RIE2025) plan, we will support the development and commercialisation of sustainability solutions,” said Mr Tan.
“Under the Green Economy pillar of the Singapore Green Plan 2030, we aim to strengthen global and regional partners to conduct R&D in green technologies.”
To remain globally competitive and seize opportunities in the global semiconductor supply chain, companies will need to come together to explore new business opportunities, including collaborating with suppliers and partners to develop innovative solutions.
Singapore has
investments from leading global semiconductor companies such as GlobalFoundries, Siltronic, and UMC. These companies invest here because of skilled talent, excellent global connectivity, ease of doing business, and well-developed semiconductor research and manufacturing ecosystem. In turn, they further drive the growth of the semiconductor industry and contribute greatly to Singapore’s R&D ecosystem with high value activities.
Over the years, Singapore has also been building its capabilities and capacity in the electronics and semiconductor industry to strengthen its role in the global supply chain.
JTC has developed four Wafer Fab Parks (WFPs) to meet the specific needs of the industry. The WFPs will be rolling out a series of physical enhancements, such as new lifestyle amenities, to create a more vibrant and conducive environment for companies and their employees.
In addition, JTC is also building semiconSpace in Tampines Wafer Fab Park, which is a new plug-and-play development that will meet the stringent requirements of semiconductor companies, such as vibration- sensitive flooring. The first phase is targeted to be completed by this year.
The Government will continue to work with key industry partners and schools to attract more locals to join the manufacturing sector. Mr Alvin Tan said, “We will also ensure that our

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