1. Minister Tan See Leng of the Ministry of Manpower (MOM) and Second Minister for Trade and Industry attended "SEMICON Southeast Asia 2025" on May 20, 2025, and stated that the foundational theories of the global semiconductor supply chain have been overturned by geopolitical realities. Despite the current turmoil in the semiconductor industry, Singapore will continue to cooperate with partners who are committed to maintaining free and open trade, such as through bilateral or regional platforms to help enterprises enter new supply chains and end markets.
2. Minister Tan believes that the semiconductor industry has flourished over the past decades through a highly integrated global supply chain, with each country developing its own specialties. For example, Southeast Asia has become a major semiconductor manufacturing center, accounting for one-fifth of global chip exports in 2023; Singapore also plays an important role, with 1 in every 10 chips manufactured globally and 1 in every 5 chipmaking machines coming from Singapore. However, the recent U.S. restrictions on the export of advanced chips and related manufacturing equipment, along with potential tariffs, mark a turning point in reshaping semiconductor collaboration.
3. Although the U.S.-China tariff war has eased, it is expected that the U.S. will continue imposing new tariffs targeting specific industries, particularly semiconductors, pharmaceuticals, and electronics. While the semiconductor industry faces uncertainties, megatrends like generative AI and industrial automation are expected to drive growth. Demand for advanced semiconductors across various applications—including consumer electronics, EVs, and 5G—will continue to rise. The ASEAN semiconductor market is projected to nearly double by 2032.
4. Minister Tan further pointed out that beyond deepening ties with like-minded economies, the Singapore government is collaborating with the industry to promote innovation and nurture talent for future growth. For instance, A*STAR's Institute of Microelectronics has established an open R&D production line for 200mm silicon carbide wafers, which has already benefited some enterprises. The local startup WaferLead has utilized this line to deliver high-quality SiC wafer products.
5. SEMI President and CEO Ajit Manocha believes the semiconductor industry is poised for significant growth and unprecedented opportunities. Currently valued at US$600 billion, the industry is expected to reach US$1 trillion within a few years due to the AI boom. In the next decade, quantum computing will further drive demand, with the industry forecast to reach US$2 trillion by 2040. Headquartered in the U.S., SEMI has over 3,000 member companies globally and recently announced it will establish a second headquarters in Singapore, reflecting optimism for Asia's semiconductor future.
6. In addition, 55 Taiwanese semiconductor companies formed a delegation to participate in SEMICON Southeast Asia 2025 in Singapore, seeking collaboration opportunities. On May 20, Ambassador Tung Chen-yuan of the Taipei Representative Office in Singapore stated at the "Taiwan Semiconductor Innovation Product Launch" that the exhibiting companies are Taiwan's most innovative and leading enterprises, supporting global giants like TSMC, UMC, ASE, and MediaTek. These companies are "hidden champions," providing critical equipment, precision tools, and key components for Taiwan’s semiconductor development.
7. Taiwan holds a crucial position in the global semiconductor industry. In 2024, Singapore became Taiwan's second-largest export market for semiconductor equipment, with total exports reaching US$830 million. Taiwan's investment in Singapore also hit a record high in 2024. Notably, Taiwan’s second-largest chipmaker UMC invested US$5 billion in 2022 to build a new fab in Singapore, and GlobalFoundries, the world's third-largest foundry, invested US$4 billion in 2021 to expand its Singapore fab.
8. Chairman Lin Shih-Ching of the Taiwan Association of Machinery Industry stated that Taiwan is a global leader in semiconductor development, while Singapore gathers global talent. Many companies view Singapore as Southeast Asia or the Asia-Pacific’s economic hub. The synergy between the two can create complementary advantages.
9. Chen Tsan-Jen, General Manager of Taiwan's Tunjet Company, noted that one of Singapore's key advantages is its ability to attract foreign talent, drawing skilled individuals from surrounding regions through study and work opportunities. Chen Cheng-Yen, General Manager of Jumbo Laser, stated that from the U.S.-China trade war to the pandemic to "Trump 2.0," there is growing awareness of the importance of "short-chain supply." Overseas expansion has become an irreversible trend, and future semiconductor hubs will likely be in Singapore and Malaysia. Huang Chi-Shan, General Manager of Hsiutong Machinery, added that Singapore's role as a Southeast Asian hub, along with its political and economic stability, greatly reduces geopolitical risks.