Singapore Chases Chip Investments Amid US-China Tension
Updated: Feb 15
Singapore is actively pursuing a larger share of investment in the semiconductor assembly and integrated circuit design sectors amid tension between China and the United States.
Speaking to Bloomberg TV, Beh Swan Gin, chairman of the Economic Development Board (EDB), said that as tensions between the US and China grow over trade and technology, the nation would focus on the semiconductor value chain. Competition for investments has heated up in response to the newly adopted Chips Act by the US government, which aims to bring back investments and reduce China's economic influence.
Dr. Beh, however, has assured the world that Singapore would do all in its power to get its due portion of the global wafer manufacturing market. The EDB believes that Singapore will continue to attract mature nodes, wafer fabs, and design-related chip employment despite the difficulties faced by the Chips Act.
An "unprecedented semiconductor super-cycle," as described by Dr. Beh, led to a record $22.5 billion in fixed asset investment pledges in the city-state last year and Singapore may not be able to replicate this achievement. But Dr. Beh underlined that, as a "small country", Singapore's share of the pie required to fund its economic growth is small, and as such, the achievement gap may not have a significant impact.