After more than 500 construction days and approximately 23 million man-hours, Siltronic has opened one of the world's most advanced fabs, according to Siltronic's website. According to Siltronic, it is one of the most modern and cost-effective facilities of its kind.
Covering an area of 150,000 square metres, the new fab is Siltronic's largest wafer production site in Singapore. The facility has been in production since the beginning of the year and is expected to produce up to 100,000 wafers per month by the end of the year. The new facility will not only create approximately 600 new jobs for Siltronic's 1,000 employees in Singapore, ranging from research to engineering, but will also introduce silicon wafer epitaxy capabilities to Singapore for the first time, which can produce higher conductivity wafers for high-end chips such as computers, smartphones and artificial intelligence (AI) servers.
Siltronic is one of the world's leading suppliers of silicon wafers, specializing in silicon wafer manufacturing, mainly providing polished wafers from 125mm to 300mm, epitaxial wafers, etc., and its products are widely used in the semiconductor industry. As the world's fourth-largest silicon wafer supplier and Europe's largest silicon wafer manufacturer, Siltronic has a market share of 11.7% and more than 85% of its sales are generated abroad.
Pictured: Siltronic is spending $2.2 billion to build a fab in Singapore
Speaking at the opening ceremony, Singapore's Deputy Prime Minister Heng Swee Keat highlighted that the semiconductor industry accounted for nearly 25% of Singapore's overall manufacturing growth rate. Singapore has been working to expand the semiconductor sector for decades and work with global partners to strengthen global supply chains and value chains. Siltronic's new facility will add dynamism and competitiveness to Singapore's semiconductor ecosystem.
Global semiconductor sales were about $530 billion in 2023 and are expected to reach $1 trillion by 2030. Siltronic expects to continue to increase its investment to meet future growth demand. Although the semiconductor industry is currently in a downward cycle, the demand for semiconductors and wafers is growing as trends such as AI, electric vehicles, and digitalization come to the fore.
Michael Heckmeier, CEO of Siltronic, said that Singapore is not only a production base for Siltronic, but also a strategic partner. Siltronic has established long-term relationships with government departments such as the Singapore Economic Development Board (EDB), has a large number of suppliers and customers in the Southeast Asia region, and has also attracted young Singaporean talent to join the semiconductor industry.
The opening of Siltronic's new fab in Singapore is not only a significant investment in the company's own growth strategy, but also a shot in the arm for the semiconductor industry in Singapore and globally. With the commissioning of the new plant and the application of new technologies, Siltronic is expected to occupy an even more important position in the global semiconductor market.
