Fab Equipment Spending in Southeast Asia: Growth of 108% YoY
Driving Fab Efficiency is Focus when Top Manufacturers Convene in Singapore
It’s a fact— Southeast Asia’s semiconductor industry is experiencing solid growth. Southeast Asia has been a strong contributor to the global semiconductor market, contributing 7 percent of global semiconductor fab capacity in 2010. In terms of 300 mm fab capacity, Southeast Asia earned sturdy double-digit growth of 21 percent from 2009 to 2010 (year-over-year growth). In terms of fab equipment spending, Southeast Asia experienced 108 percent growth in 2010, and another 36 percent growth is expected in 2011.
According to Singapore Economic Development Board (EDB), electronics output grew by 60.6 percent in 1H 2010, riding on recovery in global demand and capacity expansions from electronics manufacturers in Singapore. EDB also expects to generate more than 4,500 skilled electronics jobs from the investments attracted in 2011.
Southeast Asia is defined as: Malaysia, Singapore, Thailand, Australia, Vietnam, and India. Singapore remains the second largest city of semiconductor output and manufacturing hub in Asia. Global manufacturers are expanding their technology centers and influential positioning. The government attracts front-end fab and equipment makers into Singapore with tax-free incentives.
Leveraging this favorable environment, in 2009, STMicroelectronics and United Microelectronics Corporation (UMC) announced plans to expand their Singapore fab capacities by 30 percent. In 2010, IM Flash Singapore opened its facility for tool installation preparations. Foundries such as GLOBALFOUNDRIES and Systems-on-Silicon Manufacturing Company (SSMC) also announced new investments and accelerated their hiring. Infineon already had key operations that play a significant role in enabling the development and delivery of next generation electronic devices. STATS ChipPAC purchased the Shott Glass CMOS imaging chip packaging facility and is dedicated to developing the next-generation technologies such as TSV, 3D IC and silicon substrate-based system-in-package solutions in Singapore.
However, these companies have challenges to overcome. Manufacturing efficiencies, local suppliers and manpower all need to be taken into account. During its most recent meeting, Rodney Morgan, co-executive officer of IM Flash Technologies, who also serves as chairman of the SEMI Singapore Regional Advisory Board (RAB), stated that Singapore provides a great deal of opportunity, but it needs to focus on raising the visibility of the semiconductor Industry through workforce development and awareness management. “SEMI is happy to work with the semiconductor vendors in Singapore and the government to accomplish their visions of boosting the image of the Singapore semiconductor industry,” said Terry Tsao, president of SEMI Southeast Asia.
One of the visions by SEMI Singapore RAB is to coordinate member interests before governmental and regulatory authorities. The Singapore EDB and International Enterprise (IE) Singapore are the two key agencies both planning and executing strategies to enhance Singapore’s position as a global business centre and grow the Singapore economy, as well as promoting the overseas growth of Singapore-based enterprises and international trade. At last year’s SEMICON Singapore, Manohar Khiatani, deputy managing director of EDB, said, ”Building on Singapore’s strengths and experience in the semiconductor industry, we have identified clean energy as an area of growth. In the area of solar technology, Singapore is able to leverage on many of the commonalities in processing technology with semiconductor to provide high value-add and create meaningful jobs.”
Companies in the semiconductor chain residing in Singapore also need to optimize manufacturing efficiencies. From design and manufacturing to packaging and testing, an entire eco-system is absolutely essential to enhance the global competitiveness for Singapore. “The growing strength and significance of the semiconductor industry in Singapore is the reason for the rise in prominence of SEMICON Singapore 2011,” said Terry Tsao. More than just an industry tradeshow, this year’s SEMICON Singapore, to be held from May 11-13, will focus to bringing together the top manufacturers to drive fab efficiency through IDM and Foundries as well as equipment and materials markets. It will also feature a variety of forums simultaneously taking place right at the show floor.
Topics include market trends briefing, manufacturing efficiency, advanced packaging, MEMS, SOLARCON and product testing. Keynote speakers include Mr. Nicolas Gaudois, managing director of UBS Equity; Dr. Ho Ming Tong, GM and chief R&D officer of ASE Group; Dr. Seung Wook YOON, deputy director of STATS ChipPAC Ltd., and Prof. Joachim Luther, CEO of SERIS.
A university program and a job fair will be held during SEMICON Singapore 2011. These programs demonstrate the mission from SEMI Singapore RAB of connecting the global semiconductor manufacturers to Singapore-based resources and professions.
With the promising market outlook for the overall and emerging markets, SEMICON Singapore 2011 will provide insights of the latest trends and technologies, as well as address issues to better achieve higher sustainable returns and seek out new business opportunities in Singapore. For more information, visit: http://www.semiconsingapore.org/.
Check out what's new at SEMICON Singapore 2011 and register at http://www.semiconsingapore.org/Visitors.
Benefits of Exhibiting at SEMICON Singapore
SEMICON Singapore connects you to customers in Southeast Asia by demonstrating your innovation and technology leadership, building customer relationships and growing your brand, and helping you gain competitive advantage and reinforce market positioning. With the "Who's Who" of the Southeast Asian microelectronics industry participating, SEMICON Singapore is an essential event for reinforcing your market position and leadership within the region. Get connected to the dynamic and exciting market in Southeast Asia. Book your exhibit now for SEMICON Singapore 2011. For exhibitor information, visit: http://www.semiconsingapore.org/Exhibitors/ExhibitNow.
April 5, 2011