Singapore is reinforcing its semiconductor industry with an $800 million investment from 2026 to 2030 through the RIE Flagship in Semiconductors, under a new national branding initiative called SG Semiconductor. This strategy aims to solidify Singapore's role in the global chip supply chain, which already accounts for one in ten global chip outputs and one-fifth of global semiconductor manufacturing equipment production. The initiative will focus on seven key technology areas, including advanced packaging, silicon photonics, and power electronics, to address the growing demands of artificial intelligence and advanced computing.
Key partnerships are being formed and deepened with global chip firms. Applied Materials and A*STAR are expanding their joint laboratory for advanced packaging technologies, and A*STAR and GlobalFoundries are deepening their R&D collaboration on silicon photonics for high-volume manufacturing. A*STAR will also collaborate with KLA on process control and with STATS ChipPAC on co-packaged optics, strengthening Singapore's position in advanced packaging innovation and accelerating the translation of next-generation semiconductor technologies into manufacturing.
In addition to the government's investment, semiconductor industry players are committing over $500 million to R&D projects in Singapore from 2026, exceeding the $400 million spent between 2020 and 2025. This private investment, combined with the government's support, underscores Singapore's ambition to sharpen its edge in advanced chip technologies. This builds on significant prior investments, including $30 billion in semiconductor investment between 2022 and 2025, which has pushed semiconductors to approximately 7% of Singapore's GDP.
Major companies like Micron Technology are also expanding their presence, with a new advanced wafer fabrication facility representing a planned investment of approximately $24 billion over 10 years, creating around 1,600 new jobs. This facility will provide 700,000 square feet of cleanroom space, with wafer output scheduled to begin in the second half of 2028. Other significant investments include Silicon Box's $2 billion panel-level packaging plant and United Microelectronics Corporation's $5 billion Fab12i P3 facility, further cementing Singapore's role as a critical node in the global semiconductor supply chain and positioning it for growth in AI-driven technologies.
