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Singapore's Semiconductor Industry: A Vibrant Ecosystem

Ng Siew Kiang, Executive Director, Contact Singapore

A world-class technological hub located at the crossroads of Asia, Singapore is a vibrant electronics and research and development (R&D) growth engine, and is home to various multinational corporations.

The electronics sector is the backbone of Singapore's manufacturing industry, generating S$67.9 billion (US$48 billion) in output and employing about one-fifth (92,000 workers) of Singapore's total manufacturing workforce.

Figure 1. 2008(p) Manufacturing Value-Added: S$48 billion (US$33 billion)

Source: Economic Development Board

Vibrant Semiconductor Ecosystem with Full Value Chain of Activities

Echoing the story of how Singapore transformed itself from a third-world country to a first-world country within the short span of 40 years, it is interesting to see how Singapore has successfully developed its semiconductor industry from hosting only one assembly and test plant in 1968 to the vibrant industry ecosystem it is today.

Today, Singapore is home to about 40 IC design companies, 14 silicon wafer fabrication plants and 20 assembly and test facilities which have employed 40,000 workers such as IC designers and R&D engineers. Today, Singapore is ranked second in the world (behind Hsinchu, Taiwan) in terms of fabrication capacity.

Other notable achievements include:

  • 10.9 percent manufacturing output share of global semiconductor revenue.
  • 16 percent share of worldwide fabless semiconductor output.

Many of the world's renowned semiconductor companies have established their Asian operations in Singapore. They include the world's top three foundries (TSMC through its joint venture with NXP, UMC and GLOBALFOUNDRIES Singapore (formerly Chartered Semiconductor Manufacturing)); nine of the world's top 10 fabless IC design companies (Broadcom, Qualcomm, Xilinx, MediaTek, Marvell, Avago, LSI, ST-Ericsson and NVIDIA); four of the world's top six subcontract assembly and test companies (ASE, STATS ChipPAC, UTAC and Amkor); and leading integrated device manufacturers (IDMs) (TI, STMicroelectronics, AMD, Infineon, NXP and Micron).

In addition, it is worth highlighting the significant progress Singapore's semiconductor industry has made beyond manufacturing. Singapore's location at the heart of Asia places it in close proximity with Asia's growing semiconductor customer base and outsourcing partners. Top semiconductor companies from across the globe have selected Singapore as their base for supply chain management, manufacturing oversight and other regional headquarter activities. For instance, Marvell recently announced its newly expanded 100,000 square meters regional headquarters facility in Singapore that will undertake sales, technical support, design, IC assembly and testing amongst other functions.

Manufacturing for the Future: Investments in R&D

Singapore is establishing a reputation for itself as an R&D powerhouse. R&D spending by the electronics industry in Singapore increased from S$1.3 billion (US$0.92 billion) in 2006 to S$2.18 billion (US$1.54 billion) in 2007. Despite the global downturn, more than 700 new semiconductor R&D jobs have been created since 2008, including IC design positions.

Growth in R&D spending has been driven largely by private firms. For instance, Infineon invested S$400 million (US$282 million) to boost its R&D activities in Singapore. And STATS ChipPAC established an R&D centre to focus on through-silicon via (TSV) and embedded die technologies.

A new IC design research centre focused on "green" microchips and circuits that run on ultra-low power but perform faster will also be set up by June 2010. This centre seeks to build on Singapore's excellence in IC design, and it will collaborate with world-renowned universities, top research institutions and companies such as Agilent Technologies. It aims to hire at least 20 top-notch scientists and researchers.

Singapore offers end-to-end R&D capabilities, including component-level IC design and semiconductor process R&D; system-level product design; firmware development; and industrial design. For example, Dell and HP use Singapore as a base for printing, imaging and computer peripherals design as well as networking and high-end server design, respectively. This creates valuable opportunities for semiconductor companies to work closely with their systems/original equipment manufacturing (OEM) customers on product development, and enable them to tap into a full range of electronics design capabilities and talent.

New Growth Areas

The semiconductor market is projected to continue on its growth path. In a November 2009 press release, global research firm Gartner forecasted 2010 semiconductor revenue to bounce back to the 2008 revenue level at $255 billion, a 13 percent increase from 2009.

Singapore is committed to developing a robust and sustainable critical mass of wafer fabrication plants and promoting IC design activities from leading IDMs and fabless companies, particularly in analog/mixed-signal and radio frequency IC (RFIC) design, where Singapore already has a strong track record.

In addition to analog/mixed-signal and RFIC, Singapore has identified four emerging areas with strong growth potential: green electronics, bioelectronics, plastic electronics and security. Singapore will leverage its existing base of core electronics capabilities and strengths in material physics and biotechnology to pre-position and develop the local semiconductor industry to ride on these waves of growth. Several semiconductor companies in Singapore are already working on these new growth areas. For example, STMicroelectronics has established a centre developing plastic electronics, which would have applications in electronic devices such as sensors, touch screens and flexible electronics displays. And Philips Lumileds, one of the world's top five light-emitting diode (LED) makers, has set up its first high-power LED wafer fabrication facility outside of Silicon Valley.

Singapore has also identified the need for urban, health and wellness solutions, as Singapore and other cities worldwide continue to face the constraints and challenges of growing urbanization and rapidly ageing populations. The city plans to position itself as a "living lab" for companies to develop innovative and future-oriented solutions to these challenges, as well as create test-bedding platforms for testing and prototype development. Singapore's ultimate goal is to serve as the reference site for the export of such solutions to global markets.

Career Opportunities in Singapore's Semiconductor Industry

Semiconductor jobs are amongst the most highly paid in the manufacturing sector. Average remuneration for IC design, wafer fabrication and outsourced semiconductor assembly and test (OSAT) jobs is higher than the manufacturing sector by 68 percent, 37 percent and 11 percent, respectively.

The Singapore government is putting resources into developing the competencies of its future generation through a scholarship program for undergraduates and postgraduates. In 2009, the Singapore Economic Development Board established the S$16 million (US$11.3 million) IC Design Postgraduate Scholarship to train 150 IC designers with either a master's or Ph.D. over five years as part of its efforts to train talent in the semiconductor industry.

In addition, there are opportunities for engineers and technicians to play a critical role in manufacturing, R&D, product and circuit design, and testing and assembly. According to the Strategic Skills List published in July 2008 by the Singapore Ministry of Manpower, the skills most in demand in the electronics industry are IC designer, media engineer and wafer fabrication engineer.

Table 1. Executive Jobs in Demand

Job Title Job Description Wage Range* Relevant Qualifications & Training Pathways
IC Designer Design circuits embedded within electronic chips. IC designers seek to design ICs with more functionalities and better performance, taking into consideration cost, size and power consumption. US$2,100 – US$3,900
(S$3,000 – S$5,500)
Degree in Microelectronics Engineering / Mechatronics / Electronics Engineering / Electrical Engineering PCP for IC Design Engineers
Process Engineer Devise and implement processes for fabricating equipment components and modules. Ensure that processes are efficient and implement new quality improvement tools. US$2,100 – US$3,200
(S$3,000 – S$4,500)
Degree in Physics / Chemistry / Electronics / Microelectronics / Electrical Engineering / Chemical Engineering Certified WSQ Wafer Fab Engineer
Process Integration Engineer Process set-up, characterizations, robustness, correlation and integrated responses on process blocks for all technologies and products. Work on mature and new technologies and render support for continuous process improvements. US$2,100 – US$3,200
(S$3,000 – S$4,500)
Degree in Physics / Chemistry / Electronics / Microelectronics / Electrical Engineering / Chemical Engineering Certified WSQ Wafer Fab Engineer
Equipment Engineer Sustain continuous equipment uptime through hardware maintenance and improvements. Liaise with vendors or equipment makers on the development and improvement of equipment capabilities. US$2,100 – US$3,200
(S$3,000 – S$4,500)
Degree in Microelectronics Engineering / Mechatronics / Electronics Engineering / Electrical Engineering Certified WSQ Wafer Fab Engineer
Failure Analysis (FA) Engineer Provide technical direction to an analytical team which verifies, diagnoses and characterizes materials or defect in products. US$2,100 – US$3,200
(S$3,000 – S$4,500)
Degree in Microelectronics Engineering / Mechatronics / Electronics Engineering / Electrical Engineering Certified WSQ Wafer Fab Engineer

Source: Labour Market Highlights, Singapore Ministry of Manpower, August 2009
*Wage range is indicative only and refers to the gross monthly wages that workers in the occupation can expect to receive.

A typical annual package in Singapore includes a 13th month bonus and performance bonuses. Employers also contribute to an employee's Central Provident Fund (CPF), which is a mandatory savings scheme that seeks to secure an employee's financial future after retirement, and covers partial hospitalization, housing, family insurance and assets management.

A Great Place to Live

The 2009 HSBC Experience Survey results showed that expats voted Singapore the fourth-best country in the world to live and work. The expats were polled on their overall quality of life and ease of settling in. Many of them said they found standards in Singapore to be higher than those back home, and enjoyed the city-state's superior food, transport and healthcare.

The HSBC survey results are reflective of the high quality of life that global talent can enjoy in Singapore. Singapore offers a well-developed infrastructure with a wide range of education, housing and healthcare choices suited to every budget. Coupled with the country's low personal taxation rates, which are between 0 percent and 20 percent, Singapore is an affordable international career destination for those seeking to enter an exciting new phase in their lives.

About the Author

Siew Kiang is the executive director of Contact Singapore, a global alliance of the Singapore Economic Development Board and the Ministry of Manpower. Contact Singapore aims to attract global talent to work, invest and live in Singapore. For more information on working and living in Singapore, visit www.contactsingapore.sg. Job opportunities are also available at www.contactsingapore.sg/jobs.

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