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02 Dec 2004
Speech by Mr Lim Hng Kiang, Minister for Trade & Industry, at the launch of STMicroelectronics' Technopark on 2 December 2004
Your Excellencies
Mr Pasquale Pistorio, President & CEO
Mr Jean-Claude Marquet, Corporate Vice President & CEO Asia Pacific
Distinguished guests
Ladies and gentlemen
Good morning.
- It gives me great pleasure to be here to officially open STMicroelectronics' TechnoPark in Ang Mo Kio. ST is an old and committed friend of Singapore. There is no better testimony to this strong and enduring partnership than to inaugurate this TechnoPark at this 35th anniversary of ST in Singapore.
- By any measure, this TechnoPark is significant. At 180,000 sq m, it is equivalent to three times the size of our National Stadium. It houses some 6,000 employees as well as four of the 14 wafer fabs in Singapore. But the significance of this TechnoPark goes beyond its physical structure and sheer size. It represents a long-standing, tried and trusted relationship between ST and Singapore built up over the years.
- This relationship is not only reaffirmed by this inauguration of the TechnoPark, but strengthened with ST's decision to invest another $2 billion over the next two years to increase its capacity in the TechnoPark. We are deeply appreciative of ST's resounding vote of confidence in Singapore. ST can be assured that we will render our full support in facilitating your business from here.
ST's partnership with Singapore to-date
- ST came to Singapore when we were still struggling to find our place under the sun. ST was one of the first to do assembly and test operations in Singapore, starting with 200 employees and $2 million in production. But with foresight and faith, the Singapore operations have since grown to become the centre of the company's activities in the Asia Pacific, employing 7,400 employees and producing $5.5 billion in manufacturing output . ST is also the pioneer in setting up an IC design centre and our first wafer fabrication plant here. These projects paved the way for the development of Singapore's semiconductor industry.
- Besides manufacturing, ST carries out an entire range of activities here including Asia Pacific HQ and logistics, regional R&D and IC design, assembly and test, and regional sales, marketing and training. Almost all of these take place right here in the TechnoPark.
- Semiconductor chips are now ubiquitous - used in industrial applications as well as household, communications and automotive products. Given the global demand for faster and more powerful chips, ST has added three wafer fabs here over the last few years. At full capacity, the four fabs in this TechnoPark are capable of producing 120,000 wafers a week. I understand this capacity forms a large part of ST's manufacturing capabilities worldwide. ST's "Fab Four" in Singapore have also been acknowledged as the most cost efficient among their plants globally.
- ST's operation is a fine and indisputable example of Singapore as an attractive and competitive manufacturing location. We will continue to build on manufacturing to grow our economy, and EDB targets to double our total manufacturing output to $300 billion within 15 years.
Strengthening Singapore's industry clusters and enterprise ecosystem
- The depth and breadth of ST's activities is also testimony to Singapore's attractiveness for companies to carry out the full value chain of manufacturing and services activities here. Our aim is to entrench Singapore as a compelling hub of integrated industries, where companies simply have to be, to do business more efficiently and cost-effectively - as their customers, partners and suppliers are all here too.
- Singapore's semiconductor industry is a good example of this. We now have 14 wafer fabs, 19 assembly and test operations, 40 IC design companies and a strong base of supporting industries. The top three independent wafer foundries and assembly and test companies all have manufacturing operations here, and four of the world?s top 10 fabless companies are in Singapore.
- Our efforts to grow the semiconductor industry include providing dedicated infrastructure, such as the wafer fab parks, and NEWater - which is ultra-pure and requires little further treatment, for wafer fabrication plants' sensitive manufacturing operations.
- I am told that ST relies on a worldwide network of strategic partners to keep ahead of the market. Its partners in Singapore include Seagate, Maxtor, HP, Flextronics, Philips and Motorola. ST also has a vast network of distributors to serve small and medium companies, suppliers and customers in Singapore.
- Such a network clearly reflects Singapore's enterprise ecosystem at work and the added value that we provide to companies. Like ST, many of these companies have not only stayed on in Singapore, but have continued to grow their operations from here. We actively encourage more exchanges and interaction between the huge base of 7,000 MNCs, 100,000 SMEs, together with the many other start-ups and entrepreneurs from countries all over the world, so as to spur each other on to greater value creation.
ST's partnership with Singapore going forward
- Going forward, EDB will continue to work with ST and other companies to see how we can make Singapore an even more competitive location for companies. Let me elaborate on two key areas: (i) manpower; and (ii) innovation and R&D.
- In terms of manpower, Singapore already has a talented workforce ranked among the world's best for productivity, work attitude and technical skills. I believe ST has enjoyed the advantages of having an English-speaking, dedicated and hardworking workforce who are also keen to upgrade their skills and knowledge.
- Our workforce is our key competitive strength. The government is committed to investing resources to help our workers upgrade their skills. As Singapore enters a new phase of economic development, it becomes even more imperative that we continually retrain our workforce, so that they remain competitive and are able to seize the new types of jobs created.
- Besides having a skilled workforce, ST's success is also the result of continuing innovation and R&D. The company has leveraged on its semiconductor excellence in Singapore to invest in new areas such as nanotechnology, biometrics and bioMEMS - a Micro-Electro-Mechanical-System used for a wide range of applications.
- The government recognises that for companies to carry out more innovation and R&D, the protection of intellectual property is of paramount importance. As such, we have put in place a strong legal framework to protect IP created here. We were rated the most IP-protective country in Asia for two consecutive years by PERC. In a recent Global Competitiveness Report by the World Economic Forum, we were ranked first out of 73 countries for our strong IP protection and support for R&D through IP-friendly tax policies. We welcome ST to put more of their intellectual capital in Singapore.
Conclusion
- In conclusion, I would like to congratulate the management and staff of ST on the opening of its TechnoPark and to wish the company a happy 35th anniversary! We applaud them for their pioneering and innovative spirit.
- I thank ST for its significant contributions to Singapore throughout this time and I wish them every success ahead. We look forward to further trailblazing with ST as we strengthen our partnership even more in the coming years. Thank you.
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