Semiconductor production expansion in Southeast Asia, Singapore and Malaysia become hot areas

2024/06/07

TechNewsTechnology News
June 6, 2024
Author MoneyDJ

The U.S.-China trade war has upended global supply chain thinking. Due to geopolitical considerations, many international companies have requested "Taiwan +1". Therefore, how to allocate production capacity efficiently and flexibly is testing the adaptability of Taiwanese manufacturers.

Among them, Singapore and Malaysia in Southeast Asia have become hot spots for this wave of production expansion, attracting major Taiwanese wafer manufacturing, packaging and testing companies such as UMC, World Advanced Micro Devices, and ASE to invest, simultaneously creating business opportunities for related suppliers.

Southeast Asia has gradually become an important global semiconductor cluster in recent years, with major global IC design companies and IDM factories already stationed there. According to the "Taiwan Electronic Equipment Industry White Paper", the growth rate of Taiwan's semiconductor equipment exports to Singapore and Malaysia has increased significantly in recent years. This is due to the development of the local packaging and testing industry and the increased investment of major international manufacturers. This is why the two places have become Taiwan's packaging and testing factories in Southeast Asia. The reason why the layout is preferred.

According to official data from Singapore, nine of the top 15 international IC design manufacturers have set up bases in Singapore, and there are at least 14 semiconductor wafer factories and 20 semiconductor assembly and testing factories; while neighboring Malaysia accounts for the world's The packaging and testing industry accounts for nearly 13% of the market. Currently, Micron, Infineon, NXP, TI, Intel and major packaging and testing manufacturers are present.

The world's most advanced 8-inch wafer foundry released heavyweight news on the 5th. It will jointly build a new 12-inch factory in Singapore with its major customer NXP Semiconductors N.V., with the goal of starting construction in the second half of 2024 and mass production in 2027. The monthly production capacity will be increased to 55,000 pieces in 2029. The company also revealed that more than half of the currently planned production capacity has obtained long-term commitments from customers and has reached consensus on the price plan. The factory is expected to reach loss level when its monthly production capacity reaches more than 30,000 pieces.

The world's most advanced planned new factory is located in Tampines, Singapore. It is only two kilometers away from the 8-inch factory that the company previously purchased from GlobalFoundries, and is also far away from joint venture partner NXP (NXP) and its largest shareholder TSMC. The joint venture Wafer Systems Corporation (SSMC) is only about a ten-minute drive away and is very conveniently located.

Wafer foundry UMC has just held a start-up ceremony for the third phase of Singapore's Fab12i expansion of its new factory, which is set to become Singapore's most advanced semiconductor wafer foundry. Since the utilization rate of the Singapore factory is not yet at full capacity, the P1 and P2 factories can meet the current demand. Therefore, the installation time of the P3 factory is half a year later than previously expected. It will not be mass produced until 2026. In the future, it will mainly use 22/28 nanometers.

Industry analysis shows that Singapore has a high standard of living, excellent human quality, political and economic stability, complete rule of law, a complete semiconductor ecosystem, and is close to Malaysia, a packaging and testing center. It is a very competitive base for wafer fabs to expand production. . Under the wave of production expansion in Singapore and Malaysia, industries such as factory engineering, power equipment, and semiconductor packaging and testing equipment are also expected to follow the footsteps of customers and win more new orders.

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