Speech by Mr. Lim Hng kiang, minister for trade and industry, at the official opening of microcircuit technology (2002) Pte Ltd on Monday, 8 may 2006, 10.15 am, at 30 TUAS Avenue 8

Mr. Patrick Cheong, Executive Chairman, AEM-Evertech,

Mr. Tok Kian You, Group Managing Director, AEM-Evertech,

Ladies and gentlemen,

Good morning,

I am happy to be here today for the official opening of MicroCircuit Technology (2002)’s new manufacturing plant. This plant marks yet another milestone for AEM-Evertech, as well as for its subsidiary MicroCircuit Technology (2002).

Exactly two weeks ago, we saw United Test and Assembly Centre (UTAC), one of Singapore’s very own companies, expand with their second manufacturing plant. Today, it is great to see yet another home grown company, AEM-Evertech, excelling in our home environment.

Before the year 2000, some of us would remember AEM-Tech and Evertech as two separate, individual companies. Since the merger of these two companies into AEM-Evertech in 2000, AEM-Evertech has grown alongside Singapore’s electronics industry to become one of the largest local companies with a well-diversified operation. Besides manufacturing here, AEM-Evertech also uses Singapore as its headquarters to manage its operations in other countries such as Malaysia and China.

As part of AEM-Evertech’s expansion, Microcircuit Technology was acquired in 2002. Microcircuit Technology is a company that makes organic semiconductor substrate. In fact, Microcircuit Technology is the only organic semiconductor substrate manufacturer in Singapore.

Today, substrates such as printed circuit boards, or PCBs, are used in most of the electronics products around us. These electronic products range from mobile phones to digital cameras to MP3 players. However, we all know that the consumers today want everything to be as small and as compact as possible. This trend translates into miniaturization and increased functionality at the component level.

What Microcircuit Technology makes plays an important role in meeting this new demand for miniaturization and increased functionality. What was previously on a PCB can now be integrated into a semiconductor package. If you compare the size of a PCB and a semiconductor package, you will notice the sharp reduction in dimensions. The manufacture of packaging substrate is a process- and technology-intensive industry and we are glad that Singapore has been able to play a key role in this.

Microcircuit Technology’s new $80-million investment in this new manufacturing plant will not only create an additional 200 good paying and quality jobs, it will also help increase the company’s output by more than seven times.

This expansion, therefore, fits in very well with our target to double manufacturing output and value add by the year 2018. Microcircuit Technology’s growth will not only strengthen our existing semiconductor supporting industry, it will also further develop our PCB or advanced substrate capabilities.

Even though Microcircuit Technology has done well over the past few years, the company is constantly thinking of ways to stay ahead in the game.

In this respect, I understand that Microcircuit Technology is a company that really believes in continuous manpower upgrading and technology development. Microcircuit Technology makes sure that its workers are given opportunities to learn and regularly sends its engineers overseas to pick up the latest technology. This is especially important, as advancements in technology and shortening product life cycles demand that companies constantly sniff out new technologies and pick them up fast. New skills are always needed to keep up with rapid changes.

But while constant manpower upgrading and technology development keeps Microcircuit Technology in the game, for a company to really differentiate itself from its competitors, it has to innovate through R&D activities. It needs to form strategic relationships with its customers as well as leverage on the expertise and talent available in our research institutes. I understand that Microcircuit Technology does just this. For instance, Microcircuit Technology works with the Institute of Microelectronics (IME), and actively participates in IME’s Electronic Packaging Research Consortium. This is another area where Microcircuit Technology serves as a good model for others to follow.

With this, I would like to congratulate the leadership and staff of Microcircuit Technology once again for the opening of this plant. I wish you every success for the future.

Thank you.