Singapore should focus on semiconductor opportunities despite trade challenges: Industry group

Straits Times

20-05-2025

SINGAPORE - Singapore and its Asean neighbours must stay committed to advancing their semiconductor strategies as most chipmakers will continue to invest worldwide and innovate with or without trade barriers, said Mr Ajit Manocha, president and chief executive of global industry association SEMI.
Mr Manocha said for an industry that is globally interconnected and interdependent, the current trade tensions and policy uncertainty makes the operating environment extremely challenging.
However, growing demand for technology and semiconductors - which powers everything electronic - means chipmakers will look through the ongoing disruption and find the best ways to avail new opportunities.
'This is a time of unprecedented challenges and unprecedented uncertainties, but it is also a time of unprecedented opportunities,' Mr Manocha said in an interview with The Straits Times ahead of a conference - SEMICON South-east Asia 2025 - that his association is holding in Singapore this week.
'I think it will be great for the Singapore government to really say loud and clear how they plan to advance the agenda of their semiconductor strategy in this country. And I think other countries from Asean should follow suit.'
Mr Manocha said a total of 105 new chip fabrication plants, or fabs, have been announced worldwide, of which 84 are already under construction.
Six of these under construction fabs are in South-east Asia, of which half are in Singapore alone, he said.
'But with global chip sales projected to increase to US$1 trillion (S$1.3 trillion) by early 2030s, the industry will need another 30 fabs by 2030.'
This is an opportunity for Asean and Singapore, who are already part of the global chip supply chain, said Mr Manocha, adding that many countries are now trying to attract semiconductor investments.
'Singapore should definitely play a bigger role to attract more investments, given it already has the largest semiconductor ecosystem in Asean,' he said.
Mr Ajit Manocha, president and chief executive of global industry association SEMI, believes Singapore can attract more investments with its chips ecosystem already the largest in Asean.
PHOTO: AJIT MANOCHA
The Republic is a critical global node in the semiconductor supply chain, contributing one in 10 chips and one in 5 semiconductor equipment produced annually, according to Singapore's Economic Development Board.
The semiconductor industry here is composed of a diverse ecosystem with research and development and manufacturing across the chip value-chain, and contributes more than 8 per cent to Singapore's gross domestic product.
Other Asean nations, including Malaysia, Thailand, the Philippines and Vietnam, also play an important role in the global chip value chain.
The current uncertainty surrounding the industry stems from an intensifying technology competition between the United States and China - the world's two largest economies. US President Donald Trump has also threatened to impose a global sectoral tariff on US semiconductor imports.
Mr Manocha - who has previously worked at chipmakers including GlobalFoundries, Philips Semiconductors, and Spansion - said while the current economic environment is disruptive, the chip industry has gone through many ups and downs.
'I have been in this industry for more than four decades, and I have seen the earlier life cycle of this industry where we had deep up and down-cycles. But feast or famine, many of us survived those deep down-cycles and learned how to manage our businesses despite volatility.'
Mr Manocha believes the current global trade turbulence will probably persist for another six months before settling down.
'Semiconductor investments are based on the long-term view. I have not heard anybody stopping with their plans for new fabs. They may be slowing down for other reasons, but I think this will continue, and the long-term prospects of the industry are tremendous.'
He said the more persistent challenges of the industry are its constant hunt for talent and its growing need for energy, preferably from sustainable sources.
Mr Manocha said governments have an important role to play in developing talent and making sure that enough sustainable energy sources are available to power their semiconductor plants.
'The role of governments is becoming even more important in this environment, especially given the other challenges we have, like shortage of talent, the issues of energy crisis, the issues with some regulations on the chemicals. So the role of government is also very critical.'
Mr Manocha praised Singapore for its focus on developing the next generation of workforce with programmes such as the Semiconductor Active Youth Ambassador Program, or SAY, initiated by the Singapore Semiconductor Industry Association (SSIA).
The industry-led initiative, in collaboration with local polytechnics and universities, helps students gain valuable hands-on experience in the electronics sector, as well as training and mentorship opportunities with companies.
SEMI itself has a programme called the SEMI International Policy Summit, or SIPS, where it helps the global semiconductor industry collaborate with government officials responsible for guiding semiconductor policy initiatives.
SIPS working groups are focused on narrowing the talent gap with workforce development initiatives, minimizing environmental disruptions with sustainability, and ensuring safe operations with environment health and safety initiatives.
He said Singapore plays an active role in promoting SIPS goals and initiatives. Indeed, the next SIPS meeting will be in Singapore on Dec 11 and 12 this year.
'I think governments have a role to play to inspire the young generation to benefit from STEM (science, technology, engineering and mathematics) education. It is huge because that helps you develop the most advanced technologies that are going to be transformative.'
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