Singapore semiconductor growth to ease this year

SINGAPORE: Singapore’s semiconductor output growth in 2018 would probably moderate compared with last year’s strong expansion, amid recent signs of softening in global demand for mobile devices, the head of a local semiconductor industry group said.

Singapore’s trade-reliant economy grew at its fastest pace in three years in 2017 with an expansion of 3.6%, getting a boost from a pick-up in global demand for electronics products.

The semiconductor industry gave a large boost to the city state’s growth last year, with semiconductor output having surged 48% in 2017, according to data from the Economic Development Board.

Singapore’s semiconductor production in 2018 is unlikely to be as strong as last year, C.K. Tan, the president of the Singapore Semiconductor Industry Association (SSIA), told Reuters on the sidelines of the 2018 SSIA summit.

“Right now these two months, you will see some softness depending on the market segment.

“I think automotive continued to be strong. Those that apply to the consumer market, like handsets... there’s a little bit of a slowdown,” Tan said.

“When you compare it with a very good (performance) last year, this year will not be as good, but there will be growth,” said Tan, who declined to give a specific forecast.

Speaking at the same event, Senior Minister of State for the Ministry of Trade and Industry Koh Poh Koon said growth in the broader Singapore electronics industry was also likely to moderate this year.