Singapore semicon companies, including startups, can tap new S$500 million national fab facility by 2027

By 2027, Singapore semiconductor companies, including startups, will be able to tap the new S$500 million national fabrication facility announced in Budget 2025.

The facility features cleanroom infrastructure and industry-grade tools to complement companies’ research and development (R&D) efforts, said Minister for Trade and Industry Gan Kim Yong on Thursday (6 Mar).

It will also offer translational research and fabrication expertise to support the scaling and translation of R&D.

The facility will be established under the National Semiconductor Translation and Innovation Centre (NSTIC), set up last April under the Agency for Science, Technology and Research (A*STAR).

The new facility broadens NSTIC to cover more semiconductor technologies, said Gan, who is also deputy prime minister, in the Committee of Supply debate on his ministry’s budget.

Currently, NSTIC provides access to R&D infrastructure for companies and researchers in flat optics and silicon photonics. It also has capabilities for prototyping and small-volume manufacturing, allowing companies to accelerate their speed to market and scale.
 

To be sited at JTC nanoSpace @ Tampines, the NSTIC (R&D Fab) will initially focus on advanced packaging, a key growth area in the semiconductor industry.

“The NSTIC (R&D Fab) will scale up our capacity to enable similar SMEs (small and medium-sized enterprises) and the broader semiconductor industry here to build new capabilities, develop and commercialise globally competitive technologies, and create high-value jobs in Singapore,” said DPM Gan.

Singapore’s R&D efforts have helped develop a strong pipeline of innovative startups, many of which are deep tech, he noted. To help them tap innovation networks and opportunities overseas, the Ministry of Trade and Industry (MTI) will enhance the Global Innovation Alliance (GIA) to support startups in various growth stages.

This includes the GIA Discovery for startups to get familiar with markets, the GIA Proof of Concept for piloting and the GIA+ initiative for global acceleration.

Nurturing strong enterprises through innovation is part of MTI’s strategy for growth, said DPM Gan.

“We want to nurture Singapore enterprises to become regional or global enterprises,” he said. “We also seek to anchor global industry leaders here to enhance our industry ecosystems, which will benefit local companies and provide good jobs.”
 

Biomedical R&D

Separately, Second Minister for Trade and Industry Tan See Leng gave details of the S$500 million investment in biomedical R&D infrastructure mentioned in Budget 2025.

He noted that gross domestic product contribution from firms with R&D activities grew to 24 per cent in 2022, from 15 per cent a decade earlier. The number of R&D jobs rose by 7.6 per cent from 2021 to 2022.

“These are signs that our efforts are bearing fruit, and we will invest further.”

The investment in A*STAR’s biomedical infrastructure will extend it to the greater one-north area, which strengthens the R&D ecosystem in two ways, said Dr Tan.

First, A*STAR will be located closer to key partners such as the National University Health System community and venture builders.

Second, it will redesign its laboratories and workspaces to promote interdisciplinary collaboration across research institutes. Separately, the agency will introduce new biopharma manufacturing programmes with partners: the Singapore Cell Therapy Advanced Manufacturing Programme 2.0 (STAMP 2.0) and the Process Accelerator for Cell Therapy Manufacturing (PACTMAN).

STAMP 2.0 will develop lower-cost manufacturing technologies that produce higher-quality products for cell therapy. PACTMAN will develop scalable processes to accelerate the translation of cell therapies, including those developed through STAMP, from lab to clinic.
 

Growth strategies

DPM Gan outlined three other ways to drive growth: strengthening connectivity to the region and the world; fostering a pro-enterprise environment; and investing in people.

The first includes deepening integration and collaboration with immediate neighbours, he said, raising the Johor-Singapore Special Economic Zone as an example.

In fostering a pro-enterprise environment, Singapore will enhance its equity and debt financing toolkit to better support companies’ diverse growth strategies, including a new S$200 million long-term investment fund. As for investing in people, lifelong learning is critical.

For example, the Singapore Economic Development Board is partnering the Singapore Institute of Technology on a Continuing Education and Training (CET) degree, to upskill manufacturing workers with diplomas.

Dr Tan said CET will remain a key enabler to deepen Singaporeans’ skills in response to digitalisation, artificial intelligence, and the green transition. Government spending on CET initiatives in the 2024 financial year is projected to hit over S$1 billion, he noted. At the same time, Singapore must attract global talent that complements the local workforce, said Dr Tan.

He noted that the Republic has concluded agreements with both Indonesia and Vietnam to facilitate the exchange of tech and innovation talent.
 

Uncharted waters

Summing up, DPM Gan said: “This is how we will earn our living and standing in an increasingly uncertain and unfavourable external environment.”

The multilateral free trade system faces “tremendous stress” amid a tit-for-tat cycle of tariffs that could become a trade war, leading to supply chain disruptions and higher business costs, he said.

In the longer term, these may affect confidence and investment flows, and slow down the global economy.

Beyond external challenges, Singapore faces tighter constraints in land, labour, and carbon, he noted. Yet, there are still bright growth prospects in Asia and Southeast Asia, as well as new opportunities in the digital and green economy.

“Singapore can also capitalise on the shifts in production and supply chains to attract new investments and strengthen our position as a key node in the reconfigured trade flows,” he added.

“On balance, we can be cautiously confident.”
 

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