What makes Singapore a prime location for semiconductor companies driving innovation?

Global demand for semiconductors continues to grow, with the market projected to reach US$1.6 trillion (S$2.03t) by 2030¹ — fuelled by the rapid rise of artificial intelligence (AI) and the electrification of vehicles.

Singapore is a critical node in this global ecosystem, attracting over S$30 billion in semiconductor investments from 2022 to 2025. Today, we account for one in 10 chips and one in five semiconductor equipment units worldwide.

This momentum is underpinned by Singapore’s stable and trusted operating environment, efficient supply chain ecosystem, and robust intellectual property protection. Over the past five decades, the country has evolved from a base for assembly and testing into a semiconductor hub that hosts activities across the entire industry value chain, spanning Integrated Circuit (IC) design, wafer fabrication, advanced packaging, and testing.

Here’s how Singapore invests in infrastructure, R&D, and talent to grow the semiconductor industry:
 

1. Securing land and utilities for long-term industry growth

WHAT WE ARE DOING Singapore invests ahead of demand to build the infrastructure needed for advanced semiconductor manufacturing. This includes setting aside vibration-tested industrial land for high-precision fabs and developing utilities infrastructure in advance.

WHAT THIS MEANS FOR COMPANIES With ready-to-deploy land and infrastructure, companies can accelerate construction timelines and scale production with minimal disruptions. Singapore doesn’t just support semiconductor investments; we engineer the conditions for companies to scale with confidence.

HIGHLIGHTS Managed by JTC, Singapore’s public agency for sustainable industrial estates, wafer fab parks provide facilities to meet the semiconductor industry’s most stringent requirements. Singapore has four wafer fab parks that house 14 global semiconductor companies, including Global Foundries, Micron Technologies, SSMC, STMicroelectronics, and more.
 

2. Cultivating skills across the semiconductor value chain

WHAT WE ARE DOING Singapore’s semiconductor workforce exceeds 35,000. Efforts to continue growing this talent pipeline, through close collaborations between EDB, Institutes of Higher Learning (IHLs), the Singapore Semiconductor Industry Association (SSIA) and industry partners, are underway.

Key initiatives include:

• Nurturing young talent: Supported by more than 20 companies, the Singapore Industry Scholarships (SgIS) and Industry Postgraduate Programme (IPP) are aimed at attracting young talent and deepening the technical expertise of our semiconductor workforce. In niche areas such as IC design, EDB and SSIA drive interest through the IC Design Summer Camp, alongside a six-month industry-aligned training programme co-developed with Nanyang Technological University.
• Training mid-career talent: Structured training and career conversion programmes help experienced workers transition into semiconductor roles. Since 2016, nearly 3,000 mid-career professionals have transitioned into semiconductor roles.

WHAT THIS MEANS FOR COMPANIES The targeted and coordinated efforts ensure there is a continuous pipeline of trained talent to meet real industry needs. Companies in Singapore can tap our industry-ready workforce to set up and ramp up operations smoothly and successfully.

HIGHLIGHTS At Electronics Industry Day 2026, Singapore’s Institute of Technical Education (ITE) inked new MOUs with Advanced Substrate Technologies (AST), HOYA Electronics Singapore (HOES) and United Test and Assembly Centre (UTAC) to offer structured internships and hands-on training, ensuring programmes remain aligned with industry needs.

This was preceded by MOUs it had signed in 2025 with Siltronic Singapore and Vanguard International Semiconductor Singapore; and earlier in 2024 with four other major players: GlobalFoundries, Micron Technology, STMicroelectronics and A*STAR Institute of Microelectronics. These were aimed at expanding internships, recruitment of graduates, staff attachments and joint curriculum projects.

Since 2023, Micron has been partnering with five local polytechnics to scale internships, scholarships and bursaries, while also equipping teaching staff with exposure to advanced semiconductor manufacturing.
 

3. Driving frontier R&D for next-generation applications

WHAT WE ARE DOING Singapore continues to invest heavily in R&D to stay at the frontier of semiconductor innovation. Under its RIE2030 plan, Singapore will invest S$37 billion to strengthen innovation, competitiveness, and economic resilience. Semiconductors is identified as a key strategic sector.

A new RIE Flagship for semiconductors, led by A*STAR and EDB, will dedicate S$800 million across four priority areas:

• Developing world-leading capabilities in areas expected to underpin the next wave of semiconductor growth, such as advanced packaging, heterogeneous integration, and photonics.
• Aligning public R&D with industry needs.
• Growing local companies in partnership with MNCs and through venture building.
• Attracting and developing talent.

WHAT THIS MEANS FOR COMPANIES This sustained investment strengthens a deeply collaborative R&D ecosystem where public research and industry work hand in hand. For semiconductor companies in Singapore, this means faster access to cutting-edge innovation, opportunities to co-develop next-generation technologies, and a rich pool of partners, and world-class talent to scale advanced semiconductor capabilities.
 

4. Fostering a robust ecosystem of local partners

WHAT WE ARE DOING Singapore fosters deep collaboration between global semiconductor players and local enterprises that serve as solution providers and co-development partners. These partnerships accelerate capability building while strengthening overall ecosystem resilience.

To scale such collaborations, companies can tap the Partnerships for Capability Transformation (PACT) scheme which supports supplier development, co-innovation, capability training, internationalisation and corporate venturing partnerships between MNCs and local enterprises.
 

WHAT THIS MEANS FOR COMPANIES PACT helps lower the cost of collaboration across equipment, testing, manpower and supplier qualification. For semiconductor companies, this translates into stronger supply chain resilience, faster localisation, and access to a trusted network of capable partners.

HIGHLIGHTS GlobalFoundries has partnered local additive manufacturing firm Forefront AM to enable faster, more efficient equipment repairs. Meanwhile, ELH Additive Manufacturing has expanded into advanced additive manufacturing for metal and polymer components, supporting MNCs across aerospace, defence and semiconductor sectors.
 

5. Enabling companies to achieve their sustainability ambitions

WHAT WE ARE DOING Singapore is partnering manufacturers to deploy best-in-class greenhouse gas abatement and energy-efficient systems, while piloting next-generation solutions to accelerate decarbonisation.

To this end, the Resource Efficiency Grant for Emissions enables companies to receive support to undertake projects that improve energy efficiency and achieve measurable and verifiable carbon abatement of at least 250 tonnes per annum.

At the same time, the country is expanding access to cleaner energy—through regional power grids that enable low-carbon electricity imports, alongside investments in emerging solutions such as hydrogen, geothermal energy and carbon capture, utilisation and storage. Read more >>

WHAT THIS MEANS FOR COMPANIES Businesses can pursue their decarbonisation goals with confidence, backed by funding support, proven solutions, and access to promising low-carbon technologies on the horizon. Together, these resources help companies reduce emissions and improve energy efficiency while meeting long-term sustainability targets — all without compromising operational performance.

HIGHLIGHTS STMicroelectronics partnered with SP Group to implement Singapore’s largest industrial District Cooling System, serving its manufacturing plant and offices. Operational since October 2025, the system is expected to deliver 20 per cent savings in annual cooling-related electricity consumption and reduce carbon emissions by up to 120,000 tonnes per year.

Separately, a world leader in memory solutions, Micron’s Catalytic Central Greenhouse Gas Abatement System removes 95 per cent of fluorinated GHG emissions, while cutting fuel use by 90 per cent and costs by 35 per cent compared with conventional abatement methods.
 

6. Fast-tracking industry-ready AI research and innovation

WHAT WE ARE DOING Semiconductor companies in Singapore are at the forefront of adopting AI and automation to drive efficiency and competitiveness in manufacturing.

To accelerate the adoption of advanced technologies, Singapore is investing more than S$1 billion in fundamental AI research, applied AI research and talent under the National AI Research and Development Plan (NAIRD) from 2025 to 2030. This investment will broaden the establishment of AI Centres of Excellence (CoEs) across industry sectors.

WHAT THIS MEANS FOR COMPANIES AI in advanced manufacturing is a national priority. With more than 60 AI Centres of Excellence across sectors, companies benefit from a dense ecosystem of technology partners, system integrators and skilled engineers with proven implementation track records—enabling faster adoption and scalable impact.

HIGHLIGHTS Micron Technology, GlobalFoundries and Infineon Technologies have been recognised by the World Economic Forum’s Global Lighthouse Network for scaling Fourth Industrial Revolution technologies in their Singapore operations. GlobalFoundries and STMicroelectronics have deployed AI-driven predictive maintenance to reduce production downtime.
 

How leading semiconductor companies are investing in Singapore

Jan 2026: Micron, a US-based global leader in memory and storage solutions, broke ground on an advanced wafer fabrication facility in Singapore, representing a US$24 billion (S$31 billion) investment over the next decade and is expected to create around 1,600 jobs.

Aug 2025: Frencken, a Singapore-based global provider of high-precision engineering and mechatronics solutions, has broken ground on a new S$63 million manufacturing facility due to open in 2027. The facility will expand and consolidate its semiconductor and advanced manufacturing operations, boosting production capacity, operational efficiency, and enabling complex work such as cleanroom assembly for wafer fabrication equipment.

Apr 2025: UMC, a global semiconductor foundry, opened its new fab facility in Singapore. The facility spans two phases, with the first phase expected to start production in 2026. The new 22nm fab will be one of the most advanced semiconductor manufacturing facilities in Singapore, manufacturing semiconductors to enable communications, Internet of Things (IoT), automotive, and AI innovations. 

Jan 2025: Micron broke ground on its new High Bandwidth Memory (HBM) advanced packaging facility in Singapore. The new HBM advanced packaging facility will be the first facility of its kind in Singapore, with operations scheduled to begin in 2026.

Dec 2024: VSMC broke ground on its first 300mm fab in Singapore, with initial production slated to begin in 2027.

Nov 2024: Applied Materials hosted a summit in Singapore on the next generation of energy-efficient computing and announced plans to expand its global EPIC innovation platform to accelerate the commercialisation of advanced packaging chip technologies.
 

Discover what Singapore offers high-tech manufacturers seeking expansion in Southeast Asia. Learn how Singapore can help you build what’s next >>

This article was updated on 7 May 2026.

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Footnote: 

¹ McKinsey & Company. “The next era of semiconductor value creation.” 30 Mar 2026. https://www.mckinsey.com/industries/semiconductors/our-insights/the-next-era-of-semiconductor-value-creation