One of the Many Investments in Singapore

Nov 7, 2007

Chipmaker to set up $65m R&D centre

MAJOR chipmaker Systems on Silicon Manufacturing Company (SSMC) is investing $65 million over the next four years to set up a research and development (R&D) centre in Singapore.

The chipmaker, a joint-venture between Holland's NXP Semiconductors and Taiwan Semiconductor Manufacturing Company (TSMC), said yesterday that the centre will focus on developing specialised production processes.

It declined to reveal how many new engineers it will employ for the centre. The move builds on efforts by Singapore to move the manufacturing sector towards higher value-added activities.
'SSMC's project adds value to our industry development and creates meaningful jobs,' said Mr Lim Swee Nian, the electronics executive director of the Economic Development Board.

NXP's Singapore chief executive, Mr Carlo van den Akker, said the expansion underscores Singapore's attractiveness for world-class talent and its location amid rapidly growing Asian markets.

SSMC chief executive C.V. Jagadish said the new centre will help it reduce time-to-market and costs associated with bringing new processes into mass production.

The centre, which will be established within SSMC's existing facilities in Pasir Ris, will focus on the e-government, automotive, near-field communications and radio frequency markets.
SSMC started operations in Singapore in 2000 and runs a US$1.44 billion (S$2.09 billion) manufacturing plant that produces US$500 million worth of chips annually.

NXP, the former semiconductor arm of Dutch electronics giant Philips, holds a 61.2 per cent stake in the joint-venture, while TSMC owns the remainder.