Innovation is key for Singapore’s semicon sector to ride, not be swept by, wave of tech breakthroughs: Chee Hong Tat
Workforce development is a key pillar of these efforts, with a new agreement signed by SSIA and trade union to boost skills training
[SINGAPORE] The Republic’s semiconductor industry must be agile and innovative to navigate rapid technological disruption, even as it rides a surge in global demand, said Minister for National Development Chee Hong Tat on Wednesday (Sep 24).
“While the global semiconductor sector is experiencing a surge in demand, it is also grappling with rapid technological disruption,” he said. This includes how artificial intelligence has redefined chip design and digital fabrication, as well as how quantum technologies have “unlocked the next frontier of computing”.
Only by staying nimble can Singapore “ride the tide of technological breakthroughs instead of being swept along”, he added.
Chee was addressing industry players at the Singapore Semiconductor Industry Association (SSIA) Summit 2025, held at Resorts World Sentosa. The annual event brings together the players on the semiconductor supply chain for discussions on the key challenges and opportunities in the sector.
Singapore must focus on several key areas to achieve its semiconductor ambitions, he said. First, it must continue to build its capabilities and develop its workforce, from factory workers to chip engineers.
The sector has already made good progress in this area, Chee noted, by offering meaningful upskilling and career opportunities and giving mid-career workers the chance to reskill, grow and “thrive in new roles”.
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In partnership with Workforce Singapore, SSIA has helped to reskill more than 2,700 mid-career workers to take up roles in the semiconductor sector through the Career Conversion Programmes.
The government will continue to support these efforts by working with SSIA and investing in talent development.
Workforce transformation
The Republic must also continue to strengthen collaboration among companies, unions and workers to ensure that workforce development is a core component of industry transformation, said Chee.
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In Singapore, unions play an important role in building a skilled and adaptable workforce, and this tripartite relationship is a competitive advantage, he noted.
This is unlike unions in other countries, where they “fight for workers and nothing else, and sometimes enter into a confrontational relationship with employers”, he added.
To that end, SSIA on Wednesday signed a memorandum of understanding with the union representing workers in the electronics and electrical industries, on skills development.
Under the agreement, the United Workers of Electronics & Electrical Industries and SSIA are to work together to equip workers with future-ready skills, uplift workplace practices, and future-proof jobs in the rapidly evolving semiconductor sector.
It will also drive the adoption of Industry 4.0 technologies and sustainable manufacturing practices across companies in the semiconductor value chain.
With this, the association plans to “significantly increase” training opportunities for the industry so that its workforce can stay relevant for the future, said SSIA executive director Ang Wee Seng.
He said the initiatives emerging from the agreement are expected to benefit the 35,000 workers in the semiconductor sector, with details on the specific programmes to come.
“This partnership also allows us to attract young, promising talent to join our industry,” he added. “By working together, we can deepen our impact and accelerate transformation across the industry.”
Navigating geopolitics
Navigating geopolitical challenges was one major theme of the summit, with Ang noting that the industry was facing “tremendous pressure” from global forces.
“Geopolitics is redrawing supply chain lines. Tariffs, export controls and new alliances are forcing us to rethink where and how we build resilience,” he added.
Singapore’s semiconductor industry faces potential headwinds from the US’ recent trade policy.
The city-state is subject to a baseline 10 per cent tariff from the US, but the prospect of higher, sectoral tariffs specifically targeting the semiconductor industry looms large over the sector.
Ang said that SSIA has been helping small and medium-sized enterprises to keep abreast of the tariff changes so that they can study the impact that the changes could have on their business.
He noted that multinational companies have already factored tariffs into their long-term business plans.
“(In the) short term, you (will) see there is a small impact, but most companies do not plan their business around the tariffs,” he said. “The long-term strategy is ultimately still based on demand and supply.”
Singapore must therefore ensure that it has the right talent and technologies to continue attracting large companies, he said. This includes continuing to bolster its research and development (R&D) capabilities.
“We are not in the leading, bleeding-edge technologies, not like what we see in other semiconductor hubs. But what we have is a unique situation with very strong R&D capabilities under A*Star (Agency for Science, Technology and Research),” he said.
This will be how the Republic can ride the advancements in the sector, such as in emerging materials like gallium nitride and silicon carbide, as well as in new areas such as advanced packaging.
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