A time of soul-searching for Singapore’s semiconductor industry

In 1986, Singapore became the second nation in the world to enter the semiconductor foundry industry. This early start was instrumental in establishing the city-state as a key semiconductor hub, generating over a dozen semiconductor fabricators, each with US$1 billion or more investment. It also firmly put Singapore on the global tech map.

Though a global semiconductor power player today, China at that time lacked a single semiconductor commercial foundry facility.

Silicon wafers in production / Photo credit: RainerPlendl

This step provided the catalyst for a rapidly emerging semiconductor ecosystem, attracting global equipment makers, material developers, chemical manufacturers, and a range of support industries. Top civil leaders like Philip Yeo, alongside investment agencies such as Temasek and EDB/I, are owed a debt of gratitude for their work in bringing this to fruition.

Now, 33 years later, Singapore’s global credentials are in jeopardy. It is still a respected regional semiconductor hub, but falls behind world leaders such as the US, Taiwan, South Korea, Germany, and China. How can stakeholders energize growth to launch Singapore back to the global stage?

The engine and brain of future technologies

Semiconductors are the fundamental building blocks for innovative technologies set to transform the way we live, learn, work, and play.

Future health care

The growing demand for personalized health care is driving innovation. Wearable devices, cloud-based monitoring solutions, and remote, non-invasive treatments support increasingly informed health decisions. Semiconductor innovation and bandgap materials are driving miniaturization of chips and super sensitive sensors with superior performance, power consumption, quality, and accuracy.

Industry 4.0 and smart cities

Semiconductor chips will be vital to a smart, connected future. The Smart Nation initiative is already providing a pathway to ensure Singapore is at the forefront of this particular transformation.

Renewable opportunity

The adoption of renewable energy is crucial to averting the worst of climate change. The total installed renewable capacity globally doubled over the decade until 2017, with Southeast Asia’s renewable capacity targeted to double by 2025. Innovation in semiconductor technology is enabling this transformation, from increasingly efficient solar panels to smart grid technology supporting adoption.

Sustainable data

Superior semiconductor materials will be vital to limiting the environmental impact of our connected world, with projections that internet of things and connected devices could account for up to 14% of global emissions by 2040. Opportunities in silicon photonics technology are already improving efficiency and lowering costs for operators. And continued semiconductor innovation will be vital to leveraging the greatest data-driven opportunity from Industry 4.0.

Choosing the right path for Singapore

A veteran’s view on Singapore’s path ahead