ASM Expands Singapore Manufacturing Facility

Article By : ASM International

With the expansion, ASM's capacity in Singapore will quadruple, and global capacity will more than triple.

ASM International N.V. has officially unveiled its state-of-the-art Singapore manufacturing facility and operations hub, and announced the groundbreaking of a second manufacturing floor at the site. The opening ceremony was attended by Singapore Minister for Manpower and Second Minister for Trade and Industry, Dr. Tan See Leng, and by representatives of JTC Corp. and of the Singapore Economic Development Board.

ASM’s Singapore expansion comes amid recent global chip shortages, and will enable ASM to capitalize on surging demand brought on by accelerated digitalization trends. The facility, including the first manufacturing floor, was completed at the end of 2020. Including the second manufacturing floor, which will be production-ready early 2023, ASM’s capacity in Singapore will quadruple, and global capacity will more than triple. At the Singapore facility, ASM assembles and tests its advanced deposition tools, including ALD and Epi, that are critical for the production of semiconductor devices.

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.

“This strategic investment is increasing our ability to meet our customers’ demand and to support them transitioning to the next technology nodes,” said ASM International President and CEO Benjamin Loh. “The expansion of our second floor will further provide us with the flexibility to grow our revenue to our previously communicated target of €2.8-3.4 billion by 2025, a CAGR of 16%-21% over a five-year period. Our investment in Singapore is an important step that will help us position as a technology leader in the pursuit of our Growth through Innovation strategy.”

“Beyond boosting its manufacturing capabilities and capacity, ASM’s expansion will also advance Singapore’s semiconductor sector by creating many new jobs and business opportunities. We stand ready to continue partnering companies like ASM to grow their manufacturing footprint in Singapore and bolster Singapore’s position as an advanced manufacturing hub,” commented Second Minister Dr. Tan See Leng.

The ASM Singapore facility was built with sustainability in mind and achieved the Green Mark Gold Plus certification. Aspects including smart building monitoring and energy efficiency, enhanced insulated building envelope and façade performance, greenery incorporated into the design, water efficient fixtures and systems, and sustainable building materials all contributed to this achievement.

“Backed by strong government support, 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,” added Loh.

ASM’s Singapore operations have been instrumental in its growth. The local headcount has increased by 2.5x over the last five years to approximately 850 people by the end of 2021. Established in 2003, ASM in Singapore has transitioned over time towards higher value activities. Beyond manufacturing, the Singapore operations today also include key functions such as Supply Chain Management, worldwide IT, and Global People. This transition is illustrated by 50% of the workforce in Singapore having a degree or higher qualification. Managers and professionals account for 42% of the local ASM workforce, of which 60% are Singaporeans.

Tan Boon Khai, CEO of JTC, said “We are delighted to have ASM be part of the established semiconductor ecosystem and expand their footprint in our estate. With its newest leading-edge manufacturing facility, we hope to foster a strong spirit of collaboration and create a vibrant community for innovations to flourish. This will further strengthen Singapore’s edge as a leading advanced manufacturing hub.”

“We are delighted that ASM has chosen Singapore for a major expansion of their global production capacity. The semiconductor sector is a key pillar of Singapore’s manufacturing industry with a diverse range of capabilities, including IC design, equipment, R&D and advanced manufacturing. We look forward to ASM’s growth and the creation of new business and job opportunities in this rapidly growing sector,” said Tan Kong Hwee, Executive Vice President of Economic Development Board.

 

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