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SINGAPORE: Semiconductor manufacturer Systems on Silicon Manufacturing Company (SSMC) is boosting production in Singapore with the opening of a new facility on Tuesday, 27 November.
Built with an investment of 300 million Singaporeans, the clean rooms of Annex 10 represent a 34% increase in the space available for the manufacture of automotive and specialized chips of the company.
SSMC added that the plant, which adjoins its existing site at Paris Ris Industrial Drive 1, will increase its automotive pad production by 40%, with a potential increase of up to 60% by 2023.
It will also be a learning laboratory for the use of Industry 4.0 solutions, which has enabled the creation of around 100 jobs.
SSMC used robotic automation and the use of IoT devices to improve its manufacturing configuration. Smart solutions that work well in Singapore will be used in its other affiliate facilities, such as the NXP Semiconductor manufacturing facility in Austin, Texas.
SSMC is 61.2% owned by NXP Semiconductors and 38.8% owned by Taiwan Semiconductor Manufacturing Company.
Jagadish CV, CEO of SSMC, told Channel NewsAsia that his goal was to become a niche chip maker, adding that he was confident that the demand for chipsets in cars would be a growth engine.
Chipsets are used by the automotive industry for automotive infotainment, embedded network, communications between infrastructures, and even authentication checks and sensors.
"The new applications are creating more demand in the automotive market," said Jagadish. "By manufacturing automotive chips, SSMC stands out from its competitors."
Mr Jagdish said the qualification process for manufacturing chips for the automotive industry is time consuming. After that, the production of a chip can take from three to five years. However, he said the investment would continue to pay off over the next 10 to 15 years.
"It's a business model in which gestation is more difficult, but it will stay with you for a very long time," said Jagdish.
Chan Chun Sing, Minister of Trade and Industry, attended the launch of the new SSMC facility. When asked for his opinion on the semiconductor industry, given the current economic downturn, he said the prospects for this sector were very promising and to be part of a long term.
"If you look at SSMC's plans, I would say that they are committed in the long term to express the confidence of the sector, not only in Singapore, but also around the world," Chan said.
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