Minister announces three-pronged strategy at Soitec’s fab launch

Singapore - Lim Hng Kiang, Singapore's Minister for Trade and Industry has announced the adoption of a new strategy that will allow the semiconductor industry to be self-sustainable.

To sustain the competitiveness of Singapore's semiconductor industry, we have adopted a "three-pronged strategy," said Minister Lim.

"First, we assist local wafer fabrication plants to scale their operations and reap economies of scale. Second, we develop strong process R&D activities to ensure wafer fabrication plants are at cutting edge technology. Finally, we build a vibrant semiconductor ecosystem consisting of wafer fabrication complemented by IC design and assembly & test and supported by a strong base of substrate, chemical and equipment supplier, "the minister said, adding that this will enable the semiconductor industry in Singapore to be competitive and self-sustainable in the long-run.

Minister Lim was speaking at the Soitec inauguration ceremony for its new wafer manufacturing plant in Singapore on 7 November.

Located at the new Pasir Ris Wafer Fab Park, the facility will manufacture 300-mm SOI (silicon-on-insulator) wafers, used for the production of high-performance, cutting edge microprocessors for a range of advance electronic devices and cutting-edge consumer products.

The ceremony was attended by Minister Lim, André-Jacques Auberton-Hervé, president, CEO and chairman of Soitec, Emmanuel Arene, executive vice president, group industrial operations and CEO of Soitec Singapore and all of Soitec's board members.

Minister Lim said, "Today's event marks a first for both Soitec and Singapore. This new facility is Soitec's first overseas manufacturing operation. It is also Singapore's first SOI wafer fabrication plant. "

Last year, the output of the semiconductor sector in Singapore reached $36 billion (US$24.2 billion) accounting for 52% of the total electronics industry output.

"The supply chain in Singapore is very well organised. There are key logistics players here and being situated in Singapore for Soitec is like being in any major country; a good place to be for any supply chain and logistics operations," said Arene.

When asked by ProcurementAsia if this is why Singapore was chosen ahead of other Asian nations, Arene said, "I would say that other countries could also provide supply chain operations, but Singapore is extremely efficient and that is one of the conditions to come here."

Soitec's US$471 million investment in Singapore is expected to produce 1 million 300mm SOI wafers every year, employing 500 staff when in full operation.