The chips aren’t down

THE semiconductor industry has faced significant challenges in recent years, from the lingering effects of the Covid-19 pandemic to rising geopolitical tensions and supply chain disruptions. The pandemic led to factory shutdowns, labour shortages, and a surge in demand for chips, intensifying existing supply chain bottlenecks.

At the same time, escalating geopolitical tensions have created both challenges and opportunities for the sector. Disrupted supply chains, reliance on foreign manufacturing, and a shortage of skilled talent have posed considerable hurdles. However, new opportunities have emerged, as countries like Singapore position themselves as regional hubs for innovation and manufacturing amidst the shifting global landscape.

Today, Singapore accounts for about 10 per cent of global semiconductor output, 5 per cent of global wafer fabrication capacity, and 20 per cent of global semiconductor equipment production. As global uncertainties continue to disrupt supply chains and reshape industry dynamics, can countries like Singapore continue to capitalise on this volatility and provide the stability the industry needs moving forward?