singapore doubles down on semiconductors amid global shifts

2025-05-20 general

Singapore, Tuesday, 20 May 2025.
despite trade headwinds, singapore is strategically doubling down on its semiconductor industry. the nation already produces one in ten of the world’s chips and one in five units of semiconductor equipment. this push aims to solidify its position as a key player, potentially influencing decisions by industry giants like tsmc and asml. with global chip sales projected to hit us$1 trillion by the early 2030s, singapore is positioning itself to capture a larger share of the market.

Asean’s largest ecosystem

Singapore’s semiconductor industry already contributes over 6% to the nation’s gross domestic product, highlighting its significant economic impact [1]. Ajit Manocha, president and chief executive of global industry association Semi, emphasized Singapore’s potential for attracting further investments, noting it already possesses the largest semiconductor ecosystem in Asean [1]. This established infrastructure and strategic focus make Singapore an attractive destination for semiconductor companies looking to expand or relocate, boosting investor confidence in the region’s long-term prospects [1].

Global partnerships and investments

Singapore and the Netherlands are deepening their collaboration in the semiconductor sector, leveraging their respective strengths to foster innovation [4]. The two countries aim to connect their technology and innovation ecosystems through joint projects and public-private partnerships [4]. The Netherlands is already Singapore’s largest investor in the European Union, with over 2,000 Dutch companies registered in Singapore [4]. This collaboration strengthens Singapore’s position as a global hub for semiconductor development and manufacturing, attracting more foreign investment and technological advancements [4].

Semicon south-east asia 2025

Semi is currently holding the Semicon South-east Asia 2025 conference in Singapore, showcasing the latest industry advancements and fostering collaboration among key players [1]. This event underscores Singapore’s importance as a regional semiconductor hub and provides a platform for companies to explore new opportunities and partnerships [1]. Furthermore, the upcoming Semi International Policy Summit (Sips) in Singapore in December 2025 will gather industry leaders and government officials to address challenges and promote collaboration [1]. These events signal ongoing commitment and investment in Singapore’s semiconductor industry [1].

Semiconductor etf performance

The domestic semiconductor industry is showing signs of strong growth, as reflected in the performance of related exchange-traded funds [6][7]. The Semiconductor ETF (159813) has seen substantial gains, with a near 1% rise and a total turnover exceeding 80 million yuan as of May 19, 2025 [6][7]. Over the past year, the Semiconductor ETF has surged by 46.52%, indicating strong investor confidence and positive market sentiment towards the sector [6][7]. This performance is further supported by net inflows of 211 million yuan into the ETF over the last five trading days, signaling increased investor interest [6][7].

Growth drivers and market trends

The global semiconductor assembly and packaging equipment market is projected to grow from US$9.72 billion in 2025 to US$17.44 billion by 2032 [5]. This growth is fueled by the increasing adoption of AI and high-performance computing (HPC) chips, as well as the rapid expansion of the electric vehicle (EV) market [5]. Governments worldwide are also providing incentives and funding to strengthen their domestic semiconductor ecosystems [5]. This market expansion presents significant opportunities for companies operating in Singapore’s semiconductor industry, driving potential revenue growth and increased stock values [5].

STMicroelectronics’ expansion

STMicroelectronics is actively expanding its product offerings, with the recent launch of its new STM32H7R/S series of microcontrollers designed for high-performance and secure applications [2]. The company is also expanding its silicon carbide (SiC) and gallium nitride (GaN) offerings, with new power modules planned for release in Q3 2025 [2]. These advancements demonstrate the company’s commitment to innovation and its ability to meet the evolving needs of the automotive and industrial markets [2]. Such developments are likely to positively influence STMicroelectronics’ stock value as it continues to strengthen its market position [2].

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Semiconductor Ecosystem Trade Tensions