SG60: A*STAR banks on deep tech ecosystem in innovation drive

Singapore’s rise as a science and technology powerhouse owes much to a national commitment to relentless innovation.

And for decades, the key institution fuelling the nation’s ambition is the Agency for Science, Technology and Research (A*STAR), established in 1991. From chip-fabrication breakthroughs to vaccine manufacturing and next-generation aviation technology, A*STAR has spent decades turning lab research into economic muscle.

Now, as global supply chains shift in a disrupted and uncertain world, A*STAR’s work and global partnerships are more vital than ever. Singapore’s semiconductor sector is globally recognised as a cornerstone of its industrial strength – accounting for more than 7 per cent of gross domestic product.

The country is also ranked among the world’s top locations for wafer fabrication. A*STAR has played a critical role in building the technological foundations underpinning that success.
 

Enabling strategic sectors

Over the past two decades, the value-added contribution of electronics manufacturing has nearly doubled from 45.6 per cent to 86.4 per cent, according to figures from the Ministry of Trade and Industry.

This shift reflects the impact of upstream research and development (R&D) and capability development, including A*STAR’s work in areas such as advanced packaging, photonics, piezoelectric microelectromechanical systems or piezo-Mems (microchips that react to touch and motion), gallium nitride, and silicon carbide.

One of the most significant collaborations has been with US semiconductor equipment giant Applied Materials.

The partnership was elevated in 2011 with a master research collaboration agreement between Applied Materials and A*STAR’s Institute of Microelectronics to launch the Centre of Excellence in Advanced Packaging to develop advanced 3D chip-packaging capabilities.

This marked a major milestone of a multi-phase relationship to advance next-generation chip fabrication processes.

In 2016, the partnership grew with a US$188 million (S$241 million) investment to expand the centre of excellence and focus on developing ways to make chips and associated devices, smaller, smarter, and faster.

In 2021, the research collaboration was again extended for a further five years. The partners pumped an additional US$210 million to upgrade and expand the centre to accelerate materials, equipment, and process technology solutions for hybrid bonding and other emerging 3D chip integration technologies.

A*STAR and Applied Materials also opened a new joint lab in 2024 to collaborate on developing innovative, cost-effective solutions for semiconductor equipment and creating capabilities for the local chip ecosystem.

A*STAR works closely with the Economic Development Board to anchor significant innovation and economic activity of global companies in Singapore such as Applied Materials and Rolls-Royce.

The agency has also collaborated on technology development and workforce upskilling through strategic partnerships with chipmaking giants such as GlobalFoundries and STMicroelectronics.

The result is a robust semiconductor R&D infrastructure that positions the Republic as more than a manufacturing hub, and as a centre for advanced materials engineering and applied chip innovation now.
 

Empowering aerospace sector with smart manufacturing

The aerospace sector is one area where A*STAR has played a decisive role in pushing the technological frontier through innovation and differentiated capabilities in automation, digital technologies, and artificial intelligence (AI).

The sector, which traces its roots in Singapore to aircraft maintenance in the 1970s, now generates more than S$8 billion in annual output and employs more than 20,000 workers.

As aircraft become more complex and the global industry races to meet net-zero emission targets by 2050, innovation is critical.

A*STAR has stepped up as a key R&D partner to ensure that the Republic remains competitive as an aerospace hub.

A highlight is the S$60 million Smart Manufacturing Joint Lab launched in 2017 with Rolls-Royce and Singapore Aero Engine Services. The collaboration aimed to develop next-generation aerospace manufacturing, as well as maintenance, repair, and overhaul (MRO) capabilities enabled by advanced processes, automation, and digital technologies.

In 2019, the partners invested a further S$8 million in their joint lab to develop smart manufacturing technologies to repair high-value engine components.

This would create new opportunities and strengthen Singapore’s position as a leading aircraft MRO hub.

The aerospace effort is underpinned by broader initiatives such as the aerospace industry transformation map launched in 2018 and updated in 2025.

These road maps reinforce the role of innovation in maintaining the city-state’s competitiveness, and A*STAR’s contributions to R&D expertise in areas such as advanced materials, non-destructive inspection techniques, process automation, avionics, as well as wireless communications.
 

Nurturing the deep tech and startup ecosystem

If semiconductors and aerospace are hardware-heavy industries, A*STAR’s role in the biomedical sciences demonstrates how its research capacity extends into BioTech and diagnostics.

The agency has had a strong track record in commercialising research, and supporting startups and venture creation.

Since 2010, A*STAR has seeded Singapore’s MedTech ecosystem with research capabilities and targeted grants, delivering innovations aligned with industry and healthcare needs.

Mirxes – the Republic’s first billion-dollar BioTech startup – represents a major success in this space.

Spun out of A*STAR and the National University of Singapore in 2014, Mirxes invented and produces the world’s first blood test for early-stage gastric cancer detection.

In May this year, Mirxes became the first Singapore BioTech firm to list on the Hong Kong Stock Exchange, achieving a market capitalisation of more than US$1 billion.

While A*STAR has played a critical role in driving current industries, it is also laying the groundwork for technologies that will define the Republic’s future economy.

The agency says its efforts will align with the country’s national five-year plan for research, innovation, and enterprise (RIE).

Speaking in Parliament in February this year, then-deputy prime minister Heng Swee Keat gave a preview of the next RIE plan from 2026 to 2030, which will include a push for large-scale AI application in key sectors and the launch of major R&D programmes across different fields to drive economic growth.

A*STAR’s focus on strategic R&D investments, industry partnerships, and deep-tech commercialisation to unlock new frontiers in science and technology will ensure that it remains a strategic innovation engine for Singapore’s development.
 

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