Dutch semiconductor company ASM International has launched its Singapore manufacturing facility and operations hub today, along with the announcement of the addition of a second manufacturing floor to the facility.
The facility and first manufacturing floor was completed in 2020, and the new manufacturing floor is expected to be completed in early 2023.
Once that is complete, ASM says its capacity in Singapore will quadruple, and global capacity will more than triple.
This comes amidst recent global chip shortages and will enable ASM to capitalize on surging demand brought on by accelerated digitalisation trends.
The company reveals that at the Singapore facility, it assembles and tests its advanced deposition tools that are critical for the production of leading-edge semiconductor devices.
ASM also elaborates that the design of the new facility allows for a more efficient manufacturing flow and a higher level of flexibility, “which has been particularly beneficial to cope with the challenges of the industry supply chain constraints recently.”
See also: What shifting supply chains mean for Singapore’s manufacturing industry
ASM’s President and CEO Benjamin Loh says that the expansion will further provide ASM with the flexibility to grow its revenue to its previously communicated target of €2.8-3.4 billion ($4.18 billion-$5.07 billion) by 2025, which is a CAGR of 16%-21% over five years.
Speaking at the launch, Singapore's Second Minister for Trade and Industry Tan See Leng says ASM's expansion will also advance Singapore’s semiconductor sector by creating many new jobs and business opportunities, and added Singapore is ready to continue partnering companies like ASM to grow their manufacturing footprint in Singapore and bolster Singapore’s position as an advanced manufacturing hub.
ASM’s Singapore operations have been instrumental in its growth, adding that the local headcount has increased by 2.5x over the last five years to approximately 850 people by the end of 2021.
See also: P&G to invest over $100 mil to set up new manufacturing facility in Singapore
Loh adds, “Singapore is the ideal location for our global operations, tapping into its highly-educated workforce and leveraging the extensive supply chain ecosystem in the region,”
50% of the workforce in Singapore have a degree or higher qualification, and managers and professionals account for 42% of the local ASM workforce, of which 60% are Singaporeans.
As of Mar 28, shares of ASM closed at EUR332, up EUR 0.50 and 0.15% higher compared to its previous close.
