The Republic’s semiconductor industry is thriving but remains dependent on foreign giants due to the absence of a national champion.
Despite the semiconductor industry contributing 8% to Singapore’s GDP, the country lacks a dominant local player in the sector. Unlike industries like finance and oil and gas, which feature key local players such as DBS and Seatrium, Singapore’s semiconductor sector is heavily reliant on foreign giants.
This raises concerns as global chipmakers face increasing competition and incentives from China and the US, who provide massive subsidies to their domestic industries. Singapore, with its smaller scale and fewer resources for such incentives, may struggle to retain its semiconductor relevance in the long term.
In these turbulent times, there is the looming question: Can Singapore afford to not have a national semiconductor champion, especially as global giants may eventually look to other regions for better opportunities?
