Ms Anneke Adema, Dutch Ambassador to Singapore,
Mr Tung Chen-Yuan, Taipei Trade Representative to Singapore,
Mr Leuh Fang, Chairman, Vanguard International Semiconductors, and Visionpower Semiconductor Manufacturing Company, or VSMC in short,
Mr Andy Micallef, NXP Executive Vice President, Global Operations,
Distinguished guests,
Ladies and gentlemen,
Introduction
Good morning. It is my pleasure to join you here for the groundbreaking of VSMC’s new 300mm wafer fabrication plant.
2. Today, we celebrate the beginning of two exciting partnerships – first, between Vanguard and NXP Semiconductors, both of whom are joining forces to create VSMC; and of course second, between VSMC and the Singapore Government, as we kickstart the construction of VSMC’s new fab. In Mandarin, we call this “双 喜 临 门”, or double happiness. These partnerships are very much welcome here in Singapore, and we certainly hope they will be lasting ones, just as our fab investments have been.
3. Vanguard’s and NXP’s decision to embark on a joint venture here comes as a great delight, but not as a surprise.
a. Individually, both companies are leaders in their respective product segments. As a leading pure-play foundry, Vanguard possesses the technological know-how in specialty chip manufacturing, particularly those used in power devices and display drivers. It also has the strong support of TSMC and is well-equipped in making the next technological leap in the fabrication of specialty chips. NXP is the world’s second largest automotive chip supplier. Beyond just technological leadership, it also holds the key to a robust customer base spanning around 30 countries.
b. In an age where electrification, 5G, and IoT trends continue to drive up demand for a wide range of specialty semiconductors, it makes sense therefore for both companies to band together and leverage each other’s strengths, so as to capture the growth opportunities in this space.
c. It is in this spirit that VSMC’s new fab will produce specialty chips that are up to 40-nanometers node at a larger scale, and using new technologies that Vanguard will develop with support from TSMC. These chips will be manufactured in large part for NXP’s end-customers, to be used in various devices such as electric vehicles, and consumer electronics like smartphones and laptops.
4. And where best to site the home base for VSMC than in Singapore, since this is where both Vanguard and NXP already have well-established manufacturing operations? For Singapore, this partnership with VSMC is one that we look forward to, given the economic significance of the project.
a. Over the years, we have developed ourselves into a critical node for the global semiconductor value chain, especially in the production of specialty chips. Today, the industry contributes about 8% of our GDP, and accounts for 10% of the manufacturing workforce.
b. We want to preserve this competitive edge by bringing in high quality investments that benefit our economy and people. VSMC’s new fab is very much aligned with our goal – the project will involve a S$10.5 billion investment, and will create 1,500 jobs in Singapore.
5. Of these jobs, a significant portion will be PMET roles required to operate VSMC’s state-of-the-art automated systems. And it is no longer just as simple as getting engineers. We would need chemists, data scientists, and tech experts who can develop new materials, optimise the manufacturing processes, and operate AI-enabled analytics platforms. As the manpower Minister, this is very good news to me – it means more opportunities are available for our people to upskill and remain competitive in growth sectors like this one. Beyond jobs, the investment will also build stronger capabilities in our local suppliers – ranging from those supplying specialty gases and chemicals, consumables, to those providing facilities and transport services. VIS have been working closely with many of the local suppliers, including many of you who are present today, to support its 200mm operations in Singapore. The new plant presents opportunities to deepen partnerships with existing local suppliers while exploring new partnerships with new local suppliers.
Supporting Continued Growth of the Industry
6. I have spoken a lot about how the two partnerships we are celebrating today will benefit Singapore. Indeed, they represent a strong vote of confidence in Singapore as an attractive location for semiconductor investments. This is important as we navigate a much more competitive global landscape and seek to maintain our footing as a connected, stable investment destination with a highly skilled workforce.
7. And rest assured we are definitely not resting on our laurels. We are doing all we can to build on these qualities and strengthen our value proposition for businesses looking to invest. I will share just two examples of how we are doing so for semiconductor companies, in talent development and sustainability, which also happen to be the two portfolios I oversee.
8. First, we continue to invest in our people at all stages of their career, to maintain a healthy talent pipeline for the industry.
a. Starting as early as the pre-employment stage, we conduct student outreach programmes such as the Electronics Industry Day, Semiconductors Awareness Day, to pique our students’ interest in the relevant courses of study.
b. For highly specialised roles such as those working on cutting-edge innovation, we partner the industry and universities to run the Industrial Postgraduate Programme, which develops R&D capabilities at the post-graduate level.
c. We also facilitate the transition process for our mid-career joiners, by offering career conversion programmes that will provide on-the-job-training. Both Vanguard and NXP have been partnering us in these efforts, and I believe VSMC will be equally keen to come onboard.
9. Second, we will continue to support companies in the net-zero transition journey.
a. As you plan for your sustainability initiatives, I encourage industry partners here to work closely with EDB and EMA to tap on existing grant schemes and share best practices in emissions reduction.
b. For example, we enhanced the Resource Efficiency Grant for Emissions (or REG(E)) earlier this year. The lowering of the qualifying carbon abatement threshold from 500 to 250 tonnes per annum will allow more companies to tap on the REG(E) for additional support to reduce their emissions.
c. We are also working with like-minded partners to ensure that Renewable Energy Certificates (RECs) associated with cross-border trading of electricity are properly accounted for. This will facilitate the signing of more offtake agreements for renewable electricity to meet companies’ sustainability commitments.
Conclusion
10. In closing, allow me to congratulate Vanguard, NXP, and VSMC on the new investment, and for the successful groundbreaking event today. It is an exciting time for the industry, and we are happy to be part of your continued growth here as you break new grounds in specialty chip fabrication. I look forward to the successful completion of VSMC’s new fab, and here’s to many more good partnerships in Singapore, with Singapore.
11. Thank you.