In addition, the government is topping up $3 billion to the National Productivity Fund, which is used to give a leg up to tech-heavy industries such as medical technology and life sciences.
In a bid to keep Singapore's technological capabilities well-honed, the government plans to spend $1 billion on a national semiconductor R&D fabrication facility that will be equipped with industry-grade tools for researchers and industry partners to prototype and test new innovations. "This will further enhance Singapore's attractiveness in the semiconductor sector," says DBS Group Research in reaction to Budget 2025.
According to DBS, Singapore's semiconductor industry excels in advanced nodes of 7nm and above, but so-called mature nodes of less advanced generations, continue to play a significant role. The "most promising areas" are integrated device manufacturers (IDMs) and high-end outsourced assembly and test (OSAT) services, in which AEM Holdings (SGX:AWX
) has exposure to, says DBS.
