Electronics Components
Electronics Industry Production / Testing Equipment
Singapore
Overview
Components 2004 2005 2006 (estimated)
Total Market Size 2141 2105 2401
Total Local Production 3877 4515 5472
Total Exports 7999 12916 14093
Total Imports 6264 10506 11022
Imports from the U.S. 586 591 740
Testing Equipment 2004 2005 2006 (estimated)
Total Market Size 153 -80 630
Total Local Production 1991 1578 765
Total Exports 3746 3338 1424
Total Imports 1908 1679 1290
Imports from the U.S. 625 360 338
Footnote: Exchange rates used:
2004: US$1 = S$1.63
2005: US$1 = S$1.66
2006: US$1 = S$1.56
The above statistics are unofficial estimates
Figures are in millions of US$
Manufacturing now contributes to about 25% to the Gross Domestic Product (GDP). As Singapore has moved up the value-added chain, labor-intensive industries have moved offshore and the high-tech, IPR intensive electronics and pharmaceutical sectors have taken a larger share of total sector output.
The electronics industry in Singapore is divided into three main categories that are also its best prospects:
· Semiconductors and Disk Drives
· Electronic Modules and Components
· Electronic Manufacturing Services and Peripherals
Singapore's achievements in the electronics industry, according to the Singapore Economic Development Board (EDB), include the following:
· 10% global market share for semiconductor wafer foundry output
· Home to the world's top three wafer foundry companies
· Home to the world's top three sub-contract assembly-and-test companies
· Home to four of the world's top 10 fabless IC design companies
· 25% global market share for both printers and disk drives
Singapore's eminence in the electronics industry is evident in the quantity and scope of facilities currently located in the country. It is home to over 14 Semiconductor wafer fabrication plants (including two 300mm fabrication plants), 20 assembly and test operations, and 40 IC design centers. However, many of the disk drive manufacturers have moved out to lower cost countries, leading to less assembly and testing activity in Singapore.
Best Products/Services
Growth in this industry was driven primarily by expansion in the semiconductor, data storage and electronic modules, advanced displays, and components (such as capacitors, diodes and integrated circuits) industries. The upswing in semiconductor sales is attributed to the product’s use in a wide array of products such as cameras, televisions and musical equipment that use digitization to enhance the quality and appeal for the consumer. At present, the popularity of high tech products has fuelled the demand for semiconductors.
One of the most popular items is flat screen monitor for liquid crystal display (LCD) televisions and personal computers. Similarly, the LCD monitor for personal computers also saw a marked increase in sales. An electronic component technology that is being developed in Singapore is the Organic Light Emitting Diode (OLED) that may one day replace LCD panels. The current revenue for OLED panels is less than US$1 billion, but it is expected that the worldwide market for such panels may reach US$5 billion in five years.
As the principal driver of Singapore's manufacturing sector, electronics is the sector’s largest contributor of value-added (VA) per annum, fixed asset investment, and job creation from new investment. The production of computer equipment accounts for about half of the total electronics output in Singapore and nearly 10% of the global electronics output.
The precision engineering sector is another driver of Singapore's manufacturing industry but growth has fluctuated somewhat due to inconsistent global demand. Singapore has built up a vibrant electronic manufacturing service (EMS) community on its shores. As part of the global electronics assembly value chain, EMS companies are recognized for their arsenal of capabilities, including printed circuit board assembly, final box-build assembly and testing. Another driving force for electronic manufacturing services over original equipment manufacturers is that the EMS companies have been able to provide a whole spectrum of services ranging from design and manufacturing to supply chain management and after sales service. Many of them are also certified to ISO standards.
Many of the world’s top EMS companies such as Flextronics, Solectron and Venture are located in Singapore that is viewed as an attractive base of high value-added production activities. For 2005, the EMS industry in Singapore is expected to record a manufacturing output of more than US$3.3 billion and value-added output of close to US$400 million.
Opportunities
Overall exports from the U.S. in this sector for 2006 are estimated to be approximately 20% higher than the previous year. There are increasing opportunities for the EMS companies to pursue in the areas of medical devices (diagnostic), aerospace (navigation) and industrial equipment. In addition, there will also be upcoming opportunities in Singapore for U.S. companies.
The precision engineering industry, which supports the EMS companies, is an important pillar of the Singapore economy. Through the supply of components, tooling and equipment, this industry provides integral support to the manufacturing sector across the electronics, transport engineering and medical devices industries. The Singapore government plans to spend close to US$5 billion over the next five years to foster research and high-end production in industries such as precision engineering and biomedical sciences with the aim of replacing assembly lines that are moving to lower cost countries.
Beyond mainstream industries, Singapore is also trying to develop high growth potential areas such as photonics, nanotechnology and micro-electrical-mechanical systems. Apart from the above technology related sectors, another area that is likely to see a great deal of demand for electronics is entertainment and tourism. Singapore will build two Integrated Resorts (casinos) with a combined worth of more than US$6 billion by end of the decade. The two resorts will generate considerable demand for various electronic products.
Resources
Trade Shows
Semicon Singapore
May 8-10, 2007
http://wps2a.semi.org/wps/portal/_pagr/132/_pa.132/576
GlobalTRONICS 2008
September 9-12, 2008
http://www.globaltronics.com.sg/
Singapore Government Offices
Singapore Economic Development Board
International Enterprise Singapore
Industry Organizations
Singapore Electronics Guide
Singapore Manufacturing Federation
http://www.smafederation.org.sg
U.S. Commercial Service, Singapore Contact
CHAN Yiu Kei, Commercial Specialist
Email: yiukei.chan@mail.doc.gov