S’pore semiconductor sector could be hurt
by widening US curbs but is expected to hold out
- New U.S. export rules target China’s access to advanced chipmaking technology, impacting the global semiconductor industry
- Singapore remains a key semiconductor hub, supported by a strong ecosystem and government-industry collaboration
- Local chip firms like Applied Materials, KLA, and Micron assess impacts but expect no immediate financial harm
- Semiconductors contribute 8% to Singapore’s GDP and 10% of manufacturing jobs, with investments continuing
- Companies are diversifying supply chains amid geopolitical tensions, with NXP building a $7.8 billion plant in Singapore
The recent U.S. export restrictions on semiconductors are not expected to hurt Singapore’s status as a strong manufacturing hub, but local companies could face challenges due to rising trade tensions and technological competition. These restrictions, introduced on December 2, target China’s access to advanced chipmaking technology and equipment, and add complexity to the global semiconductor industry.
Singapore Semiconductor Industry Association’s executive director, Mr. Ang Wee Seng, stated that Singapore’s strengths, including a robust ecosystem, strategic location, and strong government-industry collaboration, which continue to attract semiconductor investments. However, he noted that the restrictions will likely hit semiconductor equipment makers around the world.
The rules limit China’s ability to obtain U.S.-made chipmaking tools and blacklisted 140 Chinese entities. They also restrict sales of high-bandwidth memory (HBM) chips, vital for AI and high-performance computing. Companies like Applied Materials, KLA, and Micron Technology, which have significant operations in Singapore, are assessing the implications but do not expect immediate financial impacts.
It provides Semiconductors, which comprise about 8% of the city-state’s GDP and 10% of its manufacturing workforce. The Ministry of Trade and Industry in Singapore has called for vigilance toward developments and urged companies to respect both local and international rules and regulations.
Amid geopolitical challenges, Singapore has become a key destination for firms seeking to diversify supply chains. Dutch chipmaker NXP Semiconductors is investing heavily in Singapore through a joint venture to build a $7.8 billion plant, emphasizing Singapore’s importance in ensuring supply chain resilience. NXP’s executive vice-president, Mr. Andy Micallef, affirmed that Singapore remains an ideal location due to its strategic advantages and alignment with global supply chain strategies.
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