US semiconductor equipment maker KLA Corp has opened the first phase of what will be its fourth plant in Singapore.

The move is part of a US$200 million (S$259 million) plan to expand its presence here and make products for Asian and global customers.

Construction of the second phase will start soon and when finished by 2026, the new site is expected to add an estimated 400 additional employees to its local workforce, the firm said at a ceremony on 3 October to mark the completion of the first phase.

California-based KLA set up in Singapore with a sales and service office in 1996 and started manufacturing in 2006. It now employs about 1,500 people and has its regional headquarters here.

KLA’s expansion comes on the heels of several new investment commitments announced in recent years by companies that fabricate semiconductors or are part of the manufacturing value chain, such as processors of silicon substrate materials and companies that test, assemble, and package chips.

The chip firms that have made fresh investments include GlobalFoundries, Micron, Siltronic, Soitec, UMC, and a US$7.8 billion joint venture by Vanguard International and NXP Semiconductors.

Earlier in 2024, Applied Materials — another leading maker of tools used across the chip value chain — started operations at its new US$600 million plant in Tampines Industrial Crescent. The facility will employ 1,000 staff once it is fully functional.

Deputy Prime Minister Gan Kim Yong said at the KLA ceremony that Singapore accounts for about 20 per cent of the global market share for semiconductor equipment.

“We stand ready to fulfil the global demand for semiconductors by growing our semiconductor equipment industry,” said Mr Gan, who is also Minister for Trade and Industry.

He noted that KLA’s new facility will make some of the company’s most complex and sophisticated wafer geometry, optical defect inspection, and eBeam defect inspection and review tools.

“The demand for new semiconductor technologies will continue to drive innovation and growth in the semiconductor equipment industry, to enable new manufacturing processes, use of new materials, new technologies, architectures, and new structures,” added Mr Gan.

“We hope this will, in turn, drive companies such as KLA to deepen their investments into Singapore, to drive the growth of our semiconductor equipment industry, and generate good jobs for Singaporeans.”

The jobs being created at KLA’s new plant will largely be engineering roles in areas such as mechanical design, materials, and product testing.

KLA Singapore is one of the strongest supporters of Singapore’s Career Conversion Programmes, to recruit, develop, and upskill talent with no semiconductor industrial background. The firm has trained more than 300 employees under the scheme so far.

Mr Gan said KLA’s expansion will also offer more opportunities for local firms to collaborate with KLA in niche areas such as precision cleaning and manufacturing of metal parts used in optics assemblies.

He cited Alantac Industrial Services, which worked closely with KLA to co-develop precision cleaning solutions to address stringent cleaning requirements of newer tools used to inspect and detect smaller defects.

“Over time, this will uplift the capabilities of our local companies, so that they, too, can become leaders in the supplier ecosystem to serve companies here and in other markets,” Mr Gan added.

KLA also runs the company’s largest global technical training centre here. It offers specialised product training and certifications to internal and external customers. As at the end of 2023, it has conducted about 15,000 training sessions.

Mr Theo Kneepkens, KLA Singapore’s country president and senior vice-president of its global operations, said: “This new facility is a testament to the strategic importance of Singapore and the remarkable growth of our business in the region.”

Mr Chang Chin Nam, the Economic Development Board’s (EDB) senior vice-president and head of semiconductors, said in a statement: “KLA’s expansion here is a testament to the competitiveness of Singapore’s semiconductor ecosystem and will strengthen our position as a critical global node for semiconductor equipment to meet growing global demands.”

EDB said Singapore’s overall semiconductor output makes up more than 10 per cent of the global semiconductor industry and accounts for approximately five per cent of the global semiconductor wafer fab capacity. The semiconductor industry alone contributes more than eight per cent to Singapore’s gross domestic product.

Source: The Straits Times ©️ SPH Media Limited. Permission required for reproduction.