US chip controls to have ‘limited impact’ on Singapore’s semicon sector: Tan See Leng
In January, the US imposed new export restrictions on AI-related chips
SINGAPORE’S semiconductor sector faces only a “limited impact” from new US technology restrictions, as these apply just to a “narrow subset” of advanced chips, Second Minister for Trade and Industry Tan See Leng said in Parliament on Tuesday (Feb 18).
The US controls focus primarily on advanced semiconductor technology, whereas Singapore’s industry is centred on producing “mature node chips” for appliances, automotive applications and industrial equipment, Dr Tan said in response to questions from Members of Parliament.
On Jan 13, the US introduced export restrictions on chips used for artificial intelligence (AI), to limit most countries’ access to cutting-edge semiconductor technology.
Later that month, the US implemented an “AI diffusion rule” to regulate access to high-performance AI chips, including graphics processing units such as the Nvidia H100.
“Singapore, like around 150 countries, has been classified as Tier 2,” Dr Tan noted, meaning that such countries face restrictions on the maximum levels of computing power available to them.
But he noted that Washington has yet to finalise details of the rule, nor has it communicated “any specific requirements” for changes to a country’s tier classification.
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“Our objective is to ensure adequate access to AI compute by both local and international companies with operations in Singapore,” he said.
Transhipment concerns
Dr Tan also addressed Workers’ Party MP Jamus Lim’s query about US agencies having reportedly “flagged Singapore as a hub for illicit chip transhipments to blacklisted Chinese AI firms”.
On Jan 31, Bloomberg reported that the US Commerce Department was investigating whether Chinese AI firm DeepSeek had obtained restricted US chips through companies in Singapore.
Revenue from the Republic accounts for about 20 per cent of Nvidia’s total sales, based on where customers are billed, rather than where products are ultimately shipped, the report said.
So far, the Singapore government’s checks have found that physical deliveries of Nvidia products into Singapore represent less than 1 per cent of the company’s global revenue, Dr Tan said. These shipments are primarily made to major enterprises and government agencies.
The rest of Nvidia’s revenue billed to business entities here did not involve actual shipments into the country, according to government checks, he added.
If a company in Singapore is found to be engaging in “deceptive or dishonest practices” to evade export controls, the authorities will investigate and take appropriate action, he said. “It is in our national interest to secure access to leading-edge technology and to maintain the integrity of our business environment,” Dr Tan added.
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