Singapore eyes $375m national semiconductor facility by 2027

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By 2027, Singapore semiconductor companies, including startups, can tap into the new S$500 million (US$375 million) national fabrication facility that was announced in the country’s Budget 2025.

The facility features cleanroom infrastructure and industry-grade tools to complement companies’ research and development efforts, said Minister for Trade and Industry Gan Kim Yong.

The center will be established under the National Semiconductor Translation and Innovation Centre, which was set up last April under the Agency for Science, Technology, and Research (A*Star). It will also initially focus on advanced packaging, a key growth area in the semiconductor industry.

According to Gan, Singapore’s R&D efforts have helped develop a strong pipeline of startups, many of which are in deep tech.

Nurturing such firms through innovation is part of the Ministry of Trade and Industry’s strategy for growth, said Gan.

“We want to nurture Singapore enterprises to become regional or global enterprises,” he said.

Separately, Second Minister for Trade and Industry Tan See Leng gave details on the US$375 million investment in biomedical R&D infrastructure mentioned in the Budget 2025.

He noted that the gross domestic product contribution from firms with R&D activities grew to 24% in 2022, up from 15% a decade earlier. The number of R&D jobs also rose by 7.6% from 2021 to 2022.

“These are signs that our efforts are bearing fruit, and we will invest further.”

Growth strategies

Gan outlined three other ways to drive economic growth: strengthening connectivity to the region and the world, fostering a pro-enterprise environment, and investing in people.

The first includes deepening integrations and collaborations with Singapore’s immediate neighbors such as raising the Johor-Singapore Special Economic Zone, he said.

In fostering a pro-enterprise environment, Singapore will also enhance its equity and debt financing toolkit to better support companies’ diverse growth strategies, including a new US$150 million long-term investment fund.

As for investing in people, Tan said lifelong learning will be critical and that Singapore must attract global talent that complements its local workforce.