Singapore is preparing additional land and boosting amenities to draw more semiconductor wafer fabs.
According to a report by Singapore's CNA, semiconductor companies are accelerating their investments to seize opportunities in the AI market. Singapore has become a preferred location for major companies such as Micron, Siltronic, and GlobalFoundries (GF) to set up manufacturing plants.
More land for chips
JTC Corporation, a government agency is Singapore's largest industrial real estate developer. The firm announced an 11% increase in land allocation for wafer manufacturing to attract more advanced semiconductor investments.
A new industrial park is being developed in Eastern Singapore, expected to be ready by 2024.
JTC noted that companies setting up facilities will benefit from special roads designed for the transport of large equipment and new utility pipelines. Wafer manufacturing requires stable power and water supplies, and to ensure consistent production, the park will not be located near MRT stations or other heavy industrial areas.
The semiconductor industry accounts for 20% of Singapore's manufacturing sector, employing 18,000 people. Currently, wafer fabs are concentrated in four industrial parks: Pasir Ris, Tampines, Woodlands, and North Coast, covering a total area of 374 hectares, approximately the size of 500 football fields.
Destination Singapore
GF expanded its facilities in 2023, targeting markets such as automotive, aerospace, and defense, with Qualcomm among its clients. Tan Yew Kong, GF Singapore's senior vice president, highlighted Singapore's 55-year history in semiconductor development, robust material supply capabilities, and comprehensive infrastructure. He affirmed GF's commitment to Singapore, emphasizing the importance of strategies like regionalization and friendshoring.
Tan stressed the significance of early facility establishment for companies in anticipation of future market opportunities. GF is adjusting its pace to ensure its factories are ready to launch when market opportunities arise.
JTC also plans to introduce amenities such as dining, retail stores, and childcare facilities to attract more people to the industrial parks. Some parks are already implementing these enhancements.
Although operating and labor costs in Singapore are higher than in Taiwan, Singapore offers advantages in administrative efficiency and policy flexibility. Additionally, the absence of natural disasters such as earthquakes and typhoons, coupled with the convenience of trade and shipping, allows Singapore to serve the Southeast Asian and global markets effectively.
The country's small land area means major industrial zones are within an hour's drive from Changi Airport. Investments in wafer foundries and silicon wafer manufacturing in Singapore are set to bring new production capacities online starting in 2024.
