Singapore may just be capitalizing on the ongoing tech rivalry between the United States and China, particularly in the field of semiconductor sales, according to a report by Bloomberg.
Recent data from Chinese Customs reveals that China imported chipmaking machinery worth US$407 million (S$548 million) from Singapore in April, marking the highest value since August 2022. This represents a 9.6% increase from March, contradicting the overall trend of declining semiconductor exports to China.
In contrast, China's total imports of chipmaking equipment in April decreased by 27% compared to the previous year.
Additionally, Singapore witnessed a 3.5% growth in its shipments of integrated circuit chips to China in April when compared to March.
This night time overview shows city skyline of Singapore blanketed by haze on September 18, 2019. - Toxic haze from Indonesian forest fires closed thousands of schools across the country and in neighbouring Malaysia on September 18, while air quality worsened in Singapore just days before the city's Formula One motor race.
Positive Development
This positive development sets Singapore apart from other major Asian chip suppliers, as they experienced a decline in their chip exports to the world's second-largest economy, aligning with the trend observed in chip fabrication machinery, according to Bloomberg's report.
In February, during an interview, Dr. Beh Swan Gin, the former chairman of Singapore's Economic Development Board, expressed Singapore's objective of securing a proportionate portion of investments in semiconductor assembly and integrated circuit design.
This goal arises from the growing interest of leading global tech and electronics companies in seeking geographical diversification.
By exploring options beyond China and the chipmaking hubs of Taiwan and South Korea, these companies are opening up significant opportunities for places such as Singapore to leverage and benefit from.
Noteworthy players in Singapore's semiconductor industry include Applied Materials, which manufactures chipmaking machinery locally, and chipmakers such as Soitec, GlobalFoundries, and STMicroelectronics.
Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly contemplating the construction of a fabrication plant in Singapore to produce 12-inch silicon wafers. This decision comes as Singapore offers attractive tax incentives and subsidies on utility costs, as reported in Taiwan.
Furthermore, suppliers to ASML Holding are also considering establishing plants in Southeast Asia instead of China, according to Reuters.
Read Also: US Blacklists Chinese Entities Linked to Beijing's Aerospace Programs Following Spy Balloon Takedown
US-China Tech War
As tensions between the US and China continue to rise, Singapore expresses its readiness to mediate and foster a constructive dialogue between the two economic powerhouses.
A complex interplay of various factors drives the tech war between the US and China. One significant aspect is the trade imbalances between the two countries, particularly in the technology sector.
The US has long accused China of engaging in unfair trade practices, such as intellectual property theft and forced technology transfer. These practices have fueled concerns about protecting American companies' innovations and losing economic advantage.
Related Article: China's Semiconductor Industry Sees Huge Demand in Chip Industry for 2024: Here's What The Nation is Doing to Solve it
