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Speech by Mr Teo Ming Kian, Chairman, Singapore Economic Development Board, at the groundbreaking of Showa Denko HD Singapore's second hard disk media plant at Pioneer Crescent on 2 December 2005, 10.30 am
Ohashi-san, Representative Director and Chairman of the Board of Directors
Distinguished guests
Ladies and gentlemen
Good morning.
1. Let me first extend a warm welcome to Ohashi-san for making this trip to Singapore on this special occasion. I first met Ohashi-san when Showa Denko acquired Mitsubishi Chemical Infonics’ hard disk division in 2003. At that time, Ohashi-san said to me, although not in these exact words, that he would like to be the bridge between Singapore and Japan.
2. Today's event clearly shows that Ohashi-san is a man who lives up to his words and his name, as 'Ohashi' literally means 'big bridge'. By deciding to set up this very significant media plant in Singapore, Ohashi-san has not only linked Japanese technology and capital with Singapore's top-class infrastructure and skilled workforce, but brought Japan and Singapore even closer with this big bridge.
3. To Ohashi-san, thank you for your confidence in Singapore.
4. And I am greatly honoured to be invited here to join you for today's groundbreaking ceremony.
5. The storage industry, and in particular the hard disk drive industry is very important to Singapore. We are the world's largest manufacturer of hard disk drives, accounting for more than a third of the world market. Global demand for hard disk drives is set to rise. According to a report by IDC, shipment of hard disk drives globally is expected to double in 5 years from that in 2004 .
6. This phenomenal growth in demand means phenomenal opportunity for Singapore. And Singapore is well positioned to take advantage of this opportunity with the many hard disk drive players and the supporting industry already established here. Technological and manufacturing capabilities are well developed. These are critical factors for success for the industry in Singapore.
7. Consumers expect higher and higher storage capacity. And the Singapore industry has been deeply involved throughout the years as the areal density grew at an impressive 60 per cent compound annual growth rate (CAGR). High precision and quality in the area of mechatronics are essential. The hard disk drive may look like a simple device. But the technology that goes behind the product is extremely sophisticated. Using a simple analogy, a hard disk drive head flying at 3.5 nm above the disk media rotating at 10,000 rpm, is equivalent to a Boeing 747 flying full speed at 0.21 mm above the ground.
8. Singapore has, over the years, built up the capabilities and infrastructure to handle the development and manufacturing of such sophisticated devices.
9. To continue to excel in the hard disk drive industry, we will continue building on our R&D efforts. In this respect, we already have Seagate and Maxtor setting up their first development and design centres outside of the US here. Both are also leveraging on Singapore's focus in R&D. The Singapore Government has announced increased R&D spending to 3 per cent of GDP within the next five years. In addition, we have dedicated research institutes, like the Data Storage Institute (DSI), to serve the hard disk drive industry.
10. Furthermore, as part of our cluster development strategy, Singapore has, through the years, built up a strong network of precision engineering players to support the hard disk drive industry. The hard disk drive industry and the precision engineering supporting industry have grown hand in hand and are mutually reinforcing.
11. The disk media is a key component in hard disk drives. Singapore's position as the hard disk drive capital of the world is therefore bolstered by the presence of world-class disk media players here. We are proud to have Showa Denko, the world's largest merchant supplier, with us. With Showa Denko’s help, Singapore's disk media industry reported a total of 1.2 billion Singapore dollars in output last year. This represented a quarter of the disk media unit shipments globally.
12. Showa Denko's renewed commitment with this second plant will further elevate Singapore's standing in the global disk media industry. Ohashi-san has said that the demand for hard disk media will grow by at least 15 per cent. I share his optimism and we are confident that Singapore has what it takes to grow in tandem with Showa Denko. In fact, with the establishment of Showa Denko's new plant, Singapore will be in an excellent position to become 'the disk media capital of the world'.
13. With the projected global demands for hard disk drive rising, and the technological and manufacturing foundation well prepared, the sun is shining brightly for the hard disk drive industry here in Singapore. By establishing another plant here, Showa Denko is poised to grow and flourish. My best wishes to Showa Denko for many successful years ahead.
14. Thank you.
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