The small state of Singapore, which occupies an area of 734 km2 and has 5.5 million inhabitants, actually controls about 5% of the world's volume of silicon wafer processing, and in the face of the struggle of individual regions for the localization of such industries, claims its fair market share, according to local officials.
The head of the Singapore Economic Development Board, Beh Swan Gin, had to admit that the so-called US "Chips Act" would obviously increase competition for investment in the global market, and this is of particular importance for Singapore, since the state also seeks to develop the semiconductor industry on its territory. “We have to accept it as it is and do our best to get our fair share,” the official said, adding that Singapore now provides about 5% of the world’s silicon wafer processing.
Last year, the country managed to attract a record $17 billion in capital investment thanks to an "unprecedented supercycle in the semiconductor market." According to the Singapore authorities, the local economy will continue to attract the production of chips using mature lithography, as well as component developers. However, the success of 2022 in terms of the volume of attracted investments is unlikely to be repeated this year. “We are a small country, and we need not such a big piece of the pie to ensure an acceptable pace of economic development,” the official concluded.