Singapore will continue to strengthen its existing partnerships and forge new alliances to allow its semiconductor industry to access new supply chains and end-markets in the face of a global trade crisis, Manpower Minister Tan See Leng said on 20 May.

Speaking at the opening ceremony of SEMICON Southeast Asia 2025, a global conference and exhibition for the chip industry, Dr Tan said the Republic will also work closely with the industry to ramp up innovation and workforce development.

He said the stronger efforts are needed as the industry now faces a challenging operating environment due to trade and geopolitical tensions.

“The semiconductor industry is now in the eye of a global trade storm,” he said, referring to the unilateral export restrictions on advanced chips and related manufacturing equipment, and the imminent possibility of tariffs on global semiconductor trade.

“This has caused anxiety among companies, which are uncertain about the implications on demand for their products, as well as potential disruptions to their supply chains. Some are already putting investment decisions on hold.”

Dr Tan, who is also Second Minister for Trade and Industry, said Singapore will build on its relationship with countries that share its commitment to open and free trade, and continue to collaborate on areas across the semiconductor value chain, either bilaterally or through regional platforms.

“These efforts, complemented by similar initiatives at the industry level, will serve us well in delivering strong economic outcomes for the industry,” he said.

He pointed out that the global semiconductor industry – despite being highly cyclical – has historically demonstrated a capacity for resilience and adaptability.

“You have consistently demonstrated the ability to adapt to changing market conditions, and maintained long-term prospects for growth,” he said, referring to the 1980s US trade embargo against countries such as the former Soviet Union and Japan, and the more recent global chip shortage in 2022.

“I believe it will remain the case today,” he said.

The current uncertainty surrounding the industry stems from the tech rivalry between the US and China – the world’s two largest economies. US President Donald Trump has threatened to impose tariffs on semiconductor imports, which could hurt demand and disrupt global supply chains.

Dr Tan said Singapore has already taken some decisive steps to deepen its collaboration with the chip industry, including the establishment of a S$500 million research and development (R&D) fabrication facility under the National Semiconductor Translation and Innovation Centre.

“This provides shared industry-grade infrastructure access for companies and researchers engaging in semiconductor R&D, starting with advanced packaging,” he said.
 

Advanced packaging in the semiconductor industry refers to the technology and techniques used to create electronic devices with superior performance – both in terms of computing power and energy use – by combining multiple chips and components into a single package.

Dr Tan said more of such partnership programmes are underway for other growth domains
in semiconductors.

“This is another area that we are heavily invested in, and have worked with our industry partners to develop,” said Dr Tan.

Singapore’s educational institutions, such as the Institute of Technical Education (ITE), play an instrumental role in helping to build a local talent pipeline for companies here, he said, referring to ITE’s Work-Study Diploma programme.

“We are ramping up similar programmes so that graduates can benefit,” Dr Tan said, adding that ITE and A*Star’s Institute of Microelectronics have recently signed pacts with chipmakers GlobalFoundries (GF), Micron, and STMicroelectronics to offer student internships and staff attachments and promote joint projects.

Given the global nature of semiconductor companies’ operations, Singapore is also actively pursuing talent from the region, while providing local employees with the opportunity to gain work exposure overseas, Dr Tan said.

On the sidelines of the SEMICON event, Singapore’s Economic Development Board (EDB) and the Netherlands’ Brabant Development Agency signed a memorandum of understanding (MOU) to strengthen economic relations. The Dutch agency supports innovative tech startups.

EDB said the partnership will provide the framework for Singapore and Brabant to develop complementary business ecosystems, and allow the two agencies to work with companies and key partners in both locations to facilitate knowledge and policy exchanges, talent development initiatives, and joint research opportunities in areas such as deep tech, semiconductors, artificial intelligence, clean energy, MedTech, and AgriTech.
 

Also, GF – a US chipmaker with significant manufacturing operations here – announced plans to expand its capabilities in advanced packaging through a new MOU with A*STAR.

Under the MOU framework, A*STAR will provide GF with access to its R&D facilities, capabilities and technical support, while GF will provide critical equipment for A*STAR to further its R&D efforts.

GF said the collaboration will accelerate its plan to expand its offerings at its Singapore plant. The collaboration will also see skills enhancement initiatives implemented for GF employees, where they can develop new expertise in the area of advanced packaging.

Addressing the SEMICON event on 20 May, Mr Ajit Manocha, president and chief executive of global industry association SEMI, said the challenging global economic environment presents the industry with “unprecedented challenges and unprecedented uncertainties, but also
unprecedented opportunities”.

Besides trade and geopolitical tensions, the industry faces issues such as fragmented global supply chains and a talent shortage, he added. He said SEMI – which has 3,500 members worldwide – is working with the industry and policymakers to seek solutions for these issues.

In an effort to boost access for its members and communication with stakeholders, SEMI will set up a new global headquarters in Singapore in addition to its existing one in Milpitas, California.

Singapore is a critical global node in the semiconductor supply chain, contributing one in 10 chips and one in five pieces of semiconductor equipment produced each year. The industry contributes over 6 per cent to Singapore’s economy.
 

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