Singapore’s semiconductor industry has committed more than S$500 million (US$390 million) to research and development (R&D) projects over five years from 2026, as the city-state sharpens its push into advanced chip technologies and seeks to strengthen the competitiveness of local firms.
CNA reported that the commitment exceeds the more than S$400 million spent on semiconductor R&D between 2020 and 2025, according to the Agency for Science, Technology and Research (A*STAR).
Singapore already accounts for about one in every 10 chips produced globally, but the rise of artificial intelligence and the growing technical limits of conventional chip scaling are pushing the industry towards new technologies.
Key areas of focus include advanced packaging, heterogeneous integration and chiplets, which can bring components closer together, improve computing performance and potentially reduce energy consumption.
Research is also expanding into photonics, which uses light instead of electrical signals to move data more efficiently, as well as chips designed to handle the heavy power demands of data centres.
A*STAR deputy chief executive for innovation and enterprise Professor Yeo Yee Chia said Singapore’s highly coordinated semiconductor ecosystem could help attract companies looking to expand their R&D and business activities.
A*STAR is also investing in next-generation equipment and shared infrastructure to help companies move from research to development and manufacturing more quickly.
The shared infrastructure is particularly important for small and medium-sized semiconductor companies, which face steep costs for clean rooms, specialised equipment and research capabilities.
Yeo said giving companies access to A*STAR’s infrastructure, talent and technology could lower barriers to innovation and strengthen their ability to compete.
Singapore firms including MetaOptics and NexGen Wafer Systems have already tapped such support for R&D, talent and infrastructure.
However, industry players cautioned that technology development alone is not enough.
Securing customers and translating specialised technologies into commercially viable products remain major challenges, particularly for smaller firms operating in niche segments such as silicon photonics.
That leaves Singapore’s next semiconductor challenge extending beyond research spending — turning deeper R&D capabilities into scalable businesses, stronger customer pipelines and higher-value manufacturing.
