Siltronic Opens $2.2 Billion Wafer Fab In Singapore Amid Booming Chip Demand – Forbes
A stack of 300 millimeter silicon wafers.
German semiconductor maker Siltronic on Wednesday opened a S$2.9 billion ($2.2 billion) wafer factory in Singapore amid booming demand for advanced chips used in mobile devices, electric vehicles and data centers.
“As one of top five global wafer suppliers, Siltronic’s new fab is a significant expansion that not only supplies to Singapore’s semiconductor industry but also strengthens the resilience of the global semiconductor supply chain,” Jacqueline Poh, managing director of Singapore’s Economic Development Board said in a statement. “This investment will create good jobs and further grow the existing collaboration that Siltronic has with local suppliers in automation and precision components.”
The latest investment of Siltronic in a 300-millimeter wafer fab comes after Vanguard International Semiconductor which is backed by chip giant Taiwan Semiconductor Manufacturing—and NXP Semiconductors said last week it will build a $7.8 billion chip wafer factory in Singapore, adding to the advanced manufacturing facilities under development in the Lion City.
Singapore—a major chip manufacturing hub—has in recent years been attracting new investments from global semiconductor companies. In 2022, Taiwan’s United Microelectronics said it will build a $5 billion chip factory in Singapore, while GlobalFoundries opened a $4 billion facility last year.
Siltronic now has three factories in Singapore, making the city-state its largest production site. The company started producing 200mm wafers in 1999 from its factory in the eastern Singapore town of Tampines. Seven years later, it formed a joint venture with Samsung Electronics to build a 300mm fab. Construction works for Siltronic’s third facility, which opened yesterday, started in 2021 at the height of the Covid-19 pandemic.
“With our new fab, we will accompany the future growth of the wafer industry for many years to come and take Siltronic to a new level,” Michael Heckmeier, CEO of Siltronic AG, said in his speech during the opening ceremony.