Singapore’s focus on mature-node chips could limit its exposure to the cutting-edge AI chip market.
As the global artificial intelligence (AI) boom accelerates, countries are competing to dominate the production of advanced microchips. However, Singapore’s semiconductor industry, which predominantly focuses on mature-node chips, may be at risk of missing out on the lucrative AI chip sector.
Mature-node chips, which are used in a wide range of applications such as household appliances, cars, and industrial equipment, form the backbone of Singapore’s semiconductor ecosystem. On the other hand, cutting-edge chips designed for AI, which require smaller process nodes, are rapidly gaining attention. Despite this, experts argue that Singapore’s emphasis on mature-node chips is not necessarily a disadvantage. According to Maybank economist Brian Lee, the market for mature-node chips is much larger than that for advanced AI-focused chips.
While the AI chip market is growing fast, the overall demand for mature-node chips remains robust, and Singapore’s established position in this segment provides stability for its semiconductor industry. The country continues to play a key role in the global supply chain, with major multinational corporations like GlobalFoundries, Micron, and STMicroelectronics operating in the country, producing chips used across diverse sectors.
