Singapore_ (Commonwealth Union) _ Soitec, a French semiconductor materials supplier, broke ground on a €400 million ($571 million) expansion of its wafer production operation in Singapore.
The expansion would treble yearly output of energy-efficient wafers at the Pasir Ris Wafer Fab Park to two million and more than double Soitec’s Singapore workforce to 600 by 2026. The 45,000-square-meter addition will be finished in 2024.
According to oitec CEO Pierre Barnabe, the initiative is in response to high demand for 300mm silicon-on-insulator (SOI) wafers, which are used in 5G communication devices such as smartphones and electric vehicles.
The expansion is part of a five-year, €1.1 billion capital investment initiative that involves boosting output in Bernin, France. By 2026, the business intends to increase its worldwide yearly production capacity to roughly 4.5 million wafers.
“The development of our manufacturing facilities in France and Singapore will strengthen our worldwide footprint, attract talent, drive value, and enhance our commitment to energy savings,” Mr Barnabe said at the Pasir Ris plant event.
At the inauguration, Minister of State for Trade and Industry Low Yen Ling stated that the expansion will eventually expand Singapore’s contribution of Soitec’s worldwide manufacturing output to more than two-thirds, up from half currently.
“Amid 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 industry incentives announced by the US and the EU, as well as China’s plan to produce more microchips at home.
Soitec’s latest investment follows plans for development in Singapore by global counterparts like as Micron Technology, GlobalFoundries, and Siltronic. Experts think that these investments demonstrate that Singapore, the world’s fourth-largest chip producer, will remain an important industrial centre.
According to the Washington-based Semiconductor Industry Association, global semiconductor sales fell 6.3% from July to September, the first quarterly loss in over three years.
France’s Ambassador to Singapore Minh-di Tang, Economic Development Board managing director Jacqueline Poh, and JTC Corporation assistant chief executive Alvin Tan were also in attendance. The Pasir Ris Wafer Fab Park is managed by JTC.
