S'pore to forge global partnerships, ramp up talent development for chip industry's growth: Tan See Leng

Straits Times

20-05-2025

SINGAPORE - Singapore will continue to strengthen its existing partnerships and forge new alliances to allow its semiconductor industry to access new supply chains and end-markets, Manpower Minister Tan See Leng said on May 20.
Speaking at the opening ceremony of Semicon South-east Asia 2025, a global conference and exhibition for the chip industry, Dr Tan said the Republic will also work closely with the industry t o ramp up innovation and workforce development.
'We will build on our relationship with countries that share our commitment to open and free trade, and continue to collaborate on areas across the semiconductor value chain, either bilaterally or through regional platforms, ' he said, adding deeper integration with like-minded countries will also help Singapore chipmakers navigate global developments.
'These efforts, complemented by similar initiatives at the industry level, will serve us well in delivering strong economic outcomes for the industry,' said Dr Tan, who is also the Second Minister for Trade and Industry.
He said the efforts are needed as the industry now faces a challenging operating environment due to trade and geopolitical tensions.
'The semiconductor industry is now in the eye of a global trade storm,' he said, referring to the unilateral export restrictions on advanced chips and related manufacturing equipment and the imminent possibility of tariffs on global semiconductor trade.
'This has caused anxiety amongst companies, who are uncertain about the implications on demand for their products, as well as potential disruptions to their supply chains. Some are already putting investment decisions on hold.'
However, he pointed out that the global semiconductor industry - despite being highly cyclical - has historically demonstrated a capacity for resilience and adaptability.
'You have consistently demonstrated the ability to adapt to changing market conditions, and maintained long-term prospects for growth,' he said, referring to the 1980s US trade embargo against countries such as the former Soviet Union and Japan, and the more recently the global chip shortage in 2022
'I believe it will remain the case today,' he said.
The current uncertainty surrounding the industry stems from the tech rivalry between the United States and China - the world's two largest economies. US President Donald Trump has threatened to impose tariffs on US semiconductor imports which could hurt demand and disrupt global supply chains.
Dr Tan said Singapore has already taken some decisive steps to deepen its collaboration with the chip industry, including the establishment of a $500 million research and development (R&D) fabrication facility under the National Semiconductor Translation and Innovation Centre.
'This provides shared industry-grade infrastructure access for companies and researchers engaging in semiconductor R&D, starting with advanced packaging,' he said.
Advanced packaging in the semiconductor industry refers to the technology and techniques used to create electronic devices with superior performance - both in terms of computing power and energy use - by combining multiple chips and components into a single package.
Dr Tan said more of such partnership programmes are under way for other growth domains in semiconductors.
The other area Singapore is focusing on to promote growth in the industry is ensuring talent availability and workforce development.
'This is another area that we are heavily invested in, and have worked with our industry partners to develop.'
He said Singapore's educational institutions, such as the Institute of Technical Education (ITE), play an instrumental role in helping to build a local talent pipeline for companies here, he said referring to ITE's Work-Study Diploma programme.
'We are ramping up similar programmes so that graduates can benefit,' he said, adding ITE and the Agency for Science, Technology and Research (A*STAR's) Institute of Microelectronics have recently signed pacts with chip-makers GlobalFoundries, Micron, and STMicroelectronics to offer student internships, staff attachments and promote joint projects.
Given the global nature of semiconductor companies' operations, Dr Tan said Singapore is also actively pursuing talent from the region, while providing local employees the opportunity to gain work exposure overseas.
On the sidelines of the Semicon event, Singapore's Economic Development Board (EDB) and the Brabant Development Agency (BOM) signed a memorandum of understanding (MOU) to strengthen economic relations between Singapore and the Dutch agency that supports innovative tech start-ups.
EDB said the partnership will provide the framework for Singapore and Brabant to develop complementary business ecosystems, and allow the two agencies to work with companies and key partners in both locations to facilitate knowledge and policy exchanges, talent development initiatives, and joint research opportunities in areas such as deeptech, semiconductors, artificial intelligence, clean energy, medtech and agritech.
Also, GlobalFoundries (GF) - a US chipmaker with significant manufacturing operations here - announced plans to expand its capabilities in advanced packaging through a new MOU with the Agency for Science, Technology and Research (A*Star).
Under the MOU framework, A*Star will provide GF with access to its R&D facilities, capabilities and technical support, while GF will provide critical equipment to A*STAR to further its R&D efforts.
GF said the collaboration will accelerate its plan to expand its offerings at its Singapore plant. The collaboration will also see skills enhancement initiatives implemented for GF employees, where they can develop new expertise in the area of advanced packaging.
Addressing the Semicon event on May 20, Mr Ajit Manocha, president and chief executive of global industry association Semi, said the challenging global economic environment presents the industry 'unprecedented challenges and unprecedented uncertainties, but also unprecedented opportunities.'
He said besides trade and geopolitical tensions, the industry faces issues such as fragmented global supply chains and talent shortage.
He said Semi - which has 3,500 members worldwide - is working with the industry and policymakers to seek solutions for these issues.
In an effort to boost access of its members and communication with stakeholders, Semi will set up a new global headquarters in Singapore in addition to its existing one in Milpitas, California.
Singapore is a critical global node in the semiconductor supply chain, contributing one in 10 chips and one in 5 semiconductor equipment produced annually. The industry contributes more than 6 per cent to Singapore's economy.
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