SINGAPORE – French semiconductor materials supplier Soitec broke ground on the construction of a 400 million euro ($571 million) extension of its wafer fabrication plant in Singapore on Friday.
The extension will double annual production of energy-efficient wafers to two million at the Pasir Ris Wafer Fab park and double Soitec’s Singapore workforce to more than 600 by 2026.
The extension spread over 45,000 square metres will be completed in 2024.
Soitec chief executive Pierre Barnabe said the project is in response to strong demand for 300-millimeters silicon-on-insulator (SOI) wafers, used in 5G communication devices, including smartphones and electric vehicles.
The expansion here is part of a five-year, 1.1 billion euro capital expenditure program which includes increasing output in Bernin, France. The company aims to boost its global annual production capacity to around 4.5 million wafers by 2026.
“The expansion of our production sites both in France and Singapore will bolster our global presence, attract talent, drive value and expand our contribution to energy savings,” Mr Barnabe said at the ceremony at the Pasir Ris plant.
Ms Low Yen Ling, Minister of State for Trade and Industry, told the event that the expansion will eventually increase Singapore’s share of Soitec’s global manufacturing output to over two-thirds, up from 50 per cent now.
“Amidst the intense competition for investments and softening near-term demand in the semiconductor industry, Soitec’s decision to expand its operations here is particularly significant,” she said, referring to incentives announced by the United States and the European Union for the industry and China’s plan to produce more microchips at home.
“It signals the company’s strong confidence in Singapore and long-term commitment to building its presence here and in the region.”
Soitec’s new investment in Singapore follows expansion plans by global peers such as Micron, GlobalFoundries and Siltronic here. Experts believe these investments show that Singapore – the world’s fourth-largest chip supplier – will continue to be a major hub for the industry.
Ms Low said: “While the external demand outlook has softened in recent months, the industry’s longer-term growth trajectory remains strong.”
Worldwide sales of semiconductors dropped in the July-September period by 6.3 per cent, the first quarterly decline in about three years, according to Washington-based Semiconductor Industry Association.
But megatrends such as artificial intelligence, 5G and the internet of things are set to propel the global chip industry past US$1 trillion in market value by the end of this decade, double the size of today’s market.
“Singapore is well-positioned to capture these growth opportunities,” Ms Low said.
Also present at the event were Ms Minh-di Tang, France’s ambassador to Singapore; Ms Jacqueline Poh, managing director of the Economic Development Board, and Mr Tan Boon Kai, chief executive of Jurong Town Corporation, which runs the Pasir Ris Wafer Park.
