28 Apr 2008
Speech By Mr Philip Yeo, Chairman, SPRING Singapore for the Launch Of The Semiconductor Capability Development Programme at 2.50pm on Monday, 28 April 2008 at VDL-Enabling Technologies Group Singapore Pte Ltd
Good afternoon,
Growing Opportunities in Semicon Industry
Singapore's semiconductor industry started in the late 1960s with the likes of National Semiconductor, Fairchild Semiconductor and Texas Instruments' Integrated Circuits assembly and test operations.
Today, Singapore is an established semiconductor R&D and Manufacturing location with the whole value chain of activities, ranging from IC Design, to Wafer Fabrication as well as Assembly and Test activities. In 2007, Singapore's semiconductor industry employed more than 40,000 and generated $36 billion in manufacturing output.
Our SMEs have benefited from the growth of the semiconductor industry. They produce key components, equipment and parts for the industry. With rapid pace of technology of this industry cluster and the increasing trend towards outsourcing, there are ample opportunities for our Precision Engineering and Machinery SMEs to tap and grow.
Singapore SMEs need to upgrade
Our SMEs must develop relevant R&D capabilities, master new processes and acquire new capabilities to meet the stringent industry requirements. SPRING Singapore is pleased to launch the $6 million Semiconductor Capability Development Programme. This programme will co-fund the development of new capabilities of our SMEs to better service the semiconductor Industry. The Semicon CDP will also encourage collaboration amongst the companies to ensure close integration. Our goal is to strengthen and develop a good pool of competent Local Enterprises in our semiconductor industry into Globally Competitive Companies.
VDL-Enabling Technologies Group (VDL-ETG) is a contract manufacturer of semiconductor and other equipment from the Netherlands. It is committed to impart its know-how and key concepts on process control and quality systems to 12 of its key SME suppliers under the Semicon CDP. This upgrading project targets to reduce the SMEs' delivery lead-time from an average of 10 weeks to six weeks. It will also improve their on-time delivery rate from 85% to 95%, and reduce VDL-ETG's incoming reject rate from more than 4% today to just 1%. The SMEs will be able to meet VDL-ETG's stringent requirements. With these new capabilities, they will also be able to serve a wider range of customers and hence entrench themselves in this industry. VDL-ETG plans to leverage on these SMEs to improve its own competitiveness and create greater growth in their operations in Singapore.
We encourage more of such collaborative projects under the Semicon CDP to help SMEs upgrade. In closing, I urge you to take advantage of the Semicon CDP to develop new capabilities to serve the industry.
I wish everyone great success. Thank you.