• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

DPM Heng Swee Keat optimistic about Singapore's future as microelectronics hub — but slow production and retrenchments reveal otherwise

by The Online Citizen
16/08/2019
in Tech
Reading Time: 4 mins read
0

Image from Micron Singapore/Facebook

With strong fundamentals comprising “good connectivity, a pro-business environment and a skilled and adaptable workforce”, Singapore has the capacity to fulfil the worldwide demand for semiconductors as a manufacturing hub, said Deputy Prime Minister Heng Swee Keat.
Speaking at the unveiling of US semiconductor firm Micron Technology’s new and expanded facility on Wed (14 Aug), he said that while he recognises that the semiconductor industry is experiencing a downturn on a global level, such “headwinds” are part of the ‘semiconductor super cycle’ in the past several years.
The semiconductor industry refers to the slew of firms that manufacture electronic components such as memory chips and microprocessors.
Heng added that “global demand grew by more than 35 per cent” during said ‘semiconductor super cycle’, and that companies in Singapore survived the downturn, transformed and “emerged stronger”.
He also noted that the semiconductor industry in Singapore is projected to grow between two per cent and nine per cent in the next few years as a result of rising consumer demand for smart technological tools and devices beyond mobile phones.
“Beyond smartphones and tablets, the consumer demand for other smart devices ranging from TVs to wearables is growing,” said Heng.
The “rapid advancement and deployment of new innovative technologies” such as artificial intelligence, the Internet of Things and 5G which will make up a huge part of smart devices beyond mobile phones will also serve as a catalyst in increasing the demand for semiconductor manufacturing in Singapore.
While Micron’s president and CEO Sanjay Mehrotra told reporters that Micron has made a “multi-billion-dollar investment” in Singapore that will create 1,500 new jobs for locals, the firm also enjoyed tax breaks of US$2.1 billion for the first nine months of FY2018 and FY2019 combined, which indicates that the tax savings given by the Singapore government are even more.
Only a portion of the “multi-billion-dollar investment” has gone into the Woodlands facility, whereas the rest will go into other developments in the future, depending on market trends. Furthermore, it is not known how many of the job positions will be filled by Singaporeans instead of foreigners.
Microchip production slowing down, hundreds of staff retrenched in Singapore’s semiconductor industry due to ripple effects of U.S.-China trade tensions
Reuters also reported in Jul this year that a slowing down in microchip production and the retrenchment of hundreds of staff has made a dent in Singapore’s semiconductor industry.
Sino-U.S. trade tensions have contributed directly to the dent, as both countries impose trade tariffs on various products, while the U.S. has banned companies from dealing with Huawei, the world’s biggest telecoms equipment maker, due to security concerns.
Executive director for the Singapore Semiconductor Industry Association (SSIA) Ang Wee Seng told Reuters that “this downturn is different”, and that he was “preparing for the worst”, particularly in helping workers seek new employment opportunities in the event that they face retrenchment.
John Nelson, CEO of UTAC, a Singapore headquartered firm which tests and assembles chips, told Reuters that a “consolidation process” has begun under him in the Republic, which may result in downsizing around 10 per cent to 20 per cent of its 1,700-strong staff in the city-state by the end of this year.
According to Nelson, the firm is “taking the appropriate actions to make sure there is a future for our business in Singapore”, and that high overhead costs like rent, wages and utilities have contributed to the decision to start the “consolidation process”.
He added that UTAC may also add more days to close its factory and give its workers unpaid leave.
However, Nelson highlighted that his firm was also making “millions of dollars of investments” in Singapore on equipment for new clients and projects, including for 5G networks.
Austrian chip maker AMS, which manufactures facial recognition technology for Apple, is also one of the firms that have been laying off its staff in Singapore in order to “adapt to more muted demand trends in the consumer market in the first half”.
AMS spokesperson Patricia Moosburger also told Reuters via email that the retrenchments were also intended to “reflect improvements in manufacturing efficiency”.

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Malaysian court sentences man to 1,050 years’ jail, 24 strokes of the cane, for raping stepdaughter 105 times
AFP

Thai court jails activist for 28 years jail for royal defamation

26/01/2023
Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall
Community

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

26/01/2023
KKH’s lack of continuous monitoring baby’s vital signs “was not ideal”, said State Coroner
Health

KKH’s lack of continuous monitoring baby’s vital signs “was not ideal”, said State Coroner

26/01/2023
Dozens of COVID protesters still behind bars in China: HRW
AFP

Dozens of COVID protesters still behind bars in China: HRW

26/01/2023
8 dead, including 6 Chinese nationals, after ship sinks near Japan
AFP

8 dead, including 6 Chinese nationals, after ship sinks near Japan

26/01/2023
“党籍不会过期失效”  前进党称已就党籍终止知会卡拉
Health

Nurse disabled permanently after vaccine injury and sacked by SGH; Did the hospital advise her to apply for VIFAP?

26/01/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Latest posts

Malaysian court sentences man to 1,050 years’ jail, 24 strokes of the cane, for raping stepdaughter 105 times

Thai court jails activist for 28 years jail for royal defamation

26/01/2023
Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

26/01/2023
KKH’s lack of continuous monitoring baby’s vital signs “was not ideal”, said State Coroner

KKH’s lack of continuous monitoring baby’s vital signs “was not ideal”, said State Coroner

26/01/2023
Dozens of COVID protesters still behind bars in China: HRW

Dozens of COVID protesters still behind bars in China: HRW

26/01/2023
8 dead, including 6 Chinese nationals, after ship sinks near Japan

8 dead, including 6 Chinese nationals, after ship sinks near Japan

26/01/2023
“党籍不会过期失效”  前进党称已就党籍终止知会卡拉

Nurse disabled permanently after vaccine injury and sacked by SGH; Did the hospital advise her to apply for VIFAP?

26/01/2023
Man and 2-year-old daughter fell into hole in bridge at Sungei Buloh Wetland Reserve, “seconds away from drowning”

Man and 2-year-old daughter fell into hole in bridge at Sungei Buloh Wetland Reserve, “seconds away from drowning”

26/01/2023
Ruling on Trump ban marks defining moment for Facebook panel

Meta says Trump to be allowed back on Facebook, Instagram

26/01/2023

Trending posts

Ho Ching breaks silence over Temasek’s write down of its US$275 million investment in FTX, says it “can afford to be contrarian”

US regulator questions VCs’ due diligence work prior to investing in FTX; Ho Ching says Temasek can afford to be contrarian

by The Online Citizen
24/01/2023
27

...

Two Indian nationals paid about S$330 and S$730 respectively for forged certificates submitted in their S-Pass application

MOM found issuing EPs meant for foreign PMETs to PRC waitress and general worker

by Correspondent
26/01/2023
26

...

DPM Heng Swee Keat optimistic about Singapore's future as microelectronics hub — but slow production and retrenchments reveal otherwise

by The Online Citizen
16/08/2019
0

...

“党籍不会过期失效”  前进党称已就党籍终止知会卡拉

AGC asked to explain purposes of 68 private letters of inmates illegitimately forwarded to prosecutors

by The Online Citizen
21/01/2023
16

...

Indian rupee falls 60% since signing of CECA while Singapore becomes top investor in India

by Correspondent
25/01/2023
34

...

“党籍不会过期失效”  前进党称已就党籍终止知会卡拉

Has HDB flats become “more affordable” by “selling” at a shorter lease of 50-years?

by Leong Szehian
25/01/2023
18

...

August 2019
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Jul   Sep »
  • About Us
  • Subscribe
  • Letter submission
  • Contact Us

© 2006 - 2021 The Online Citizen

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2006 - 2021 The Online Citizen

wpDiscuz