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7SINGAPOREELECTRONICSINDUSTRYDIRECTORY2024/2025Singaporehasawell-deservedreputationasaglobalelectronicspowerhouseFordecadesoursmallbutspunkynationhaspunchedaboveitsweightattractingleadingmultinationalcorporations(MNCs)likeIntelBoschandSiemensontoourshores–fosteringavibrantecosystemfordesignmanufacturingaswellasresearchanddevelopment(R&D)withintheelectronicsindustryFromproducingsemiconductorstohousingcutting-edgeresearchlabsfocusedonnextgenerationmaterialsSingaporeselectronicssectorhasbeenacornerstoneofoureconomicsuccessstorycontributingto8%ofournationsgrossdomesticproduct(GDP)Acloserlookrevealsthatelectronicsisalsothelargestclusterwithinournationsmanufacturingsectoraccountingfor469%ofthesectorsnominalvalue-added(VA)and97%ofSingaporesoverallnominalVAin2022Looking forward this trajectoryisset tocontinueonapositivetrendOurindustryssuccesshasnotcomewithoutchallengesTheglobalchipshortagetriggeredbyaconfluenceoffactorsincludingpandemicrelateddisruptionsandsurgingdemandforelectronicshasimpactedtheindustryinrecentyearsAdditionallysofteningconsumerdemandforcertainelectronicsproductsduetoeconomicuncertaintieshaspresentedsomesetbacksYetamidstthesetemporarychallengesasenseofoptimismprevailsAStrongRecoveryin2024DrivenbyRestocksRecoveriesandGrowthMarketsTheimmediatefutureislookingbrightfortheelectronicsclusterfollowingthenormalisationofinventorylevelsandanincreaseindemand forPCsmartphoneandautomotivechipsAccordingtotheEconomicSurveyofSingapore2023globaloriginalequipmentmanufacturers(OEMs)areexpectedtocontinuerestockingchipinventoriesthroughout2024boostingthedemandforchipsfromsemiconductormanufacturersincludingmanufacturersinSingaporeAlsoPC and smartphone shipments are expectedto rise in 2024 driven by the demand of consumerandenterprisecustomersastheyupgradetheirpersonalandworkdevicesAnothergrowthmarketistheautomativesectorunderpinnedbyarisingdemandforelectricvehiclesForelectronicscompaniesinSingaporetheriseinglobaldemandisgoodnewsforthosewiththecapacitytostepinandfulfiltheseordersRiseofaSmartNationFuellingDemandforSmartElectronicsAdecadesincethelaunchofSingaporesSmartNationinitiativein2014SingaporeanscontinuemovingtowardsafuturewheredigitalisationisattheheartofhowweliveworkandplaySingaporehomesarebecomingsmarterwithconnectedappliancesandsensorsseamlesslyintegratingintoourdailyroutinesAccordingtoaGlobalDatareportSingaporesautomatedhomesmarketrecordedrevenuesofoverS$25billionin2023representingacompoundannualgrowthrate(CAGR)of72¾tween2019and2023Divingdeeperintothenumbersweseethatthesmartappliancessegmentaccountforthemarketslargest proportionin2023 with totalrevenuesof$908millionwhichisequivalentto362%ofthemarketsoverallvalueThisexplosivegrowthistranslatingintoagrowingdemandforelectroniccomponentsthatenable these functionalitiessuchasminiaturisedsensorsenergy-efficientmicrocontrollersandlow-powerconnectivitychipslikeBluetoothLowEnergy(BLE)andWi-Fi6BusinessesthatcancatertothisburgeoningdemandforsmartelectronicshaveaclearadvantageForinstancecompanieslikeSTMicroelectronicsareleveragingthistrendanddevelopinginnovativesolutions(includingkitsandtools)specificallydesignedforsmarthomeandsmartbuildingapplications