Southeast Asia Seeks to Become a Global Semiconductor Supply Chain Center
As a core player in the global semiconductor supply chain, Taiwan faces geopolitical risks, which have led Southeast Asian countries such as Malaysia, Singapore, and Vietnam to seek to become the new global semiconductor supply chain center.
The Singapore government has recently proposed significant land, water, electricity, and talent benefits, as well as special tax and subsidy incentives to attract TSMC and the world's leading (VIS) to settle in. It is reported that the world's advanced technology is working on building its first 12 inch (300mm) chip factory, investing $2 billion in the production of automotive semiconductor chips.
In 2022, there were rumors that TSMC and World Advanced had set up new factories in Singapore. Industry insiders say that TSMC has explored the possibility of establishing a semiconductor factory in Singapore to produce 7nm to 28nm processes for cars and smartphones, but has not yet actually built a factory.
Global semiconductor companies are turning their attention to Singapore, which has comprehensive research and development, design, materials and equipment, manufacturing, testing, and infrastructure. Global research institutions predict that semiconductors currently account for 7% of Singapore's GDP and will continue to grow. Global Foundries, the world's third-largest wafer foundry, completed a new factory in Singapore in September 2023 with an investment of approximately KRW 5 trillion; Liandian, ranked fourth, is also building a new factory locally. Other major manufacturers such as Micron Technology, STMicroelectronics, AMD, and Advantest have all established bases in Singapore.
The local industry believes that the election of new leaders from Taiwan and conflicts with local governments have led to repeated failures in semiconductor factory plans, resulting in TSMC seeing Singapore as an important overseas production base that surpasses Japan, the United States, and Germany.
Southeast Asian countries are also actively seeking opportunities brought about by supply chain transfer in the competition between China and the United States for chips.
Penang, Malaysia has been selected as a semiconductor production base by Intel, AMD, Broadcom, and Infineon. Infineon employs more employees in Malaysia than in Germany and plans to invest 7 billion euros in the production of next-generation power semiconductor silicon carbide (SiC).
Vietnam, as a semiconductor production base, has also received attention. In December last year, NVIDIA CEO Huang Renxun promised Vietnamese Prime Minister Pham Myung sung to build Vietnam into NVIDIA's second hometown. Vietnam has set a national goal to build its first semiconductor manufacturing plant by 2030. Global semiconductor companies such as Intel and Renesas Electronics have entered Vietnam, but only limited to packaging, testing, and design.
A semiconductor industry insider said, "Singapore and Malaysia's various tax incentives, low labor costs, and mature semiconductor ecosystems are all very attractive. Unlike South Korea's declining birth rate and output of advanced science and engineering talents, Southeast Asian countries, including Vietnam, are currently cultivating a large number of semiconductor professionals with master's and doctoral degrees."
In 2022, there were rumors that TSMC and World Advanced had set up new factories in Singapore. Industry insiders say that TSMC has explored the possibility of establishing a semiconductor factory in Singapore to produce 7nm to 28nm processes for cars and smartphones, but has not yet actually built a factory.
Global semiconductor companies are turning their attention to Singapore, which has comprehensive research and development, design, materials and equipment, manufacturing, testing, and infrastructure. Global research institutions predict that semiconductors currently account for 7% of Singapore's GDP and will continue to grow. Global Foundries, the world's third-largest wafer foundry, completed a new factory in Singapore in September 2023 with an investment of approximately KRW 5 trillion; Liandian, ranked fourth, is also building a new factory locally. Other major manufacturers such as Micron Technology, STMicroelectronics, AMD, and Advantest have all established bases in Singapore.
The local industry believes that the election of new leaders from Taiwan and conflicts with local governments have led to repeated failures in semiconductor factory plans, resulting in TSMC seeing Singapore as an important overseas production base that surpasses Japan, the United States, and Germany.
Southeast Asian countries are also actively seeking opportunities brought about by supply chain transfer in the competition between China and the United States for chips.
Penang, Malaysia has been selected as a semiconductor production base by Intel, AMD, Broadcom, and Infineon. Infineon employs more employees in Malaysia than in Germany and plans to invest 7 billion euros in the production of next-generation power semiconductor silicon carbide (SiC).
Vietnam, as a semiconductor production base, has also received attention. In December last year, NVIDIA CEO Huang Renxun promised Vietnamese Prime Minister Pham Myung sung to build Vietnam into NVIDIA's second hometown. Vietnam has set a national goal to build its first semiconductor manufacturing plant by 2030. Global semiconductor companies such as Intel and Renesas Electronics have entered Vietnam, but only limited to packaging, testing, and design.
A semiconductor industry insider said, "Singapore and Malaysia's various tax incentives, low labor costs, and mature semiconductor ecosystems are all very attractive. Unlike South Korea's declining birth rate and output of advanced science and engineering talents, Southeast Asian countries, including Vietnam, are currently cultivating a large number of semiconductor professionals with master's and doctoral degrees."