ELECTRONIC NEWS HIGHLIGHT W11.2025

1. Singapore invests $750 million in semiconductor R&D center

Prime Minister Lawrence Wong announced in his budget speech that Singapore will invest about 1 billion Singapore dollars ($744.8 million) to establish a new semiconductor research and development center. This initiative aims to promote industrial innovation and technological advancement. Wong noted that leading global technology companies are increasingly interested in expanding their operations in Singapore, especially in emerging areas such as artificial intelligence (AI) and quantum computing.

As a key player in semiconductor manufacturing and packaging, Singapore’s latest investment will further strengthen its position in the global semiconductor supply chain. The new R&D center is expected to strengthen collaboration between local enterprises and international technology companies, promoting high-value growth in the domestic semiconductor sector.

Additionally, the government plans to launch a S$1 billion private credit fund to provide more financing options for fast-growing local businesses, supporting expansion and innovation in the technology sector.

In addition to semiconductors, Singapore is investing significantly in infrastructure and energy. The government has announced a S$5 billion expansion of Changi International Airport to cement the country’s role as a global aviation hub. To attract companies to list and invest in the local stock market, Singapore is offering tax incentives. Domestic companies listed in Singapore will receive corporate income tax refunds, while fund management companies will enjoy preferential tax rates to enhance capital market competitiveness.

Learn more: Singapore invests $750 million in semiconductor R&D center

2. 6-inch SiC wafer prices hold steady

GlobalWafers President Doris Hsu recently stated that prices for 6-inch silicon carbide (SiC) wafers have stabilized. However, she cautioned that the market recovery remains uncertain. In 2024, oversupply led to a sharp decline in global SiC industry prices, falling by more than 50% from production costs, significantly disrupting supply chains around the world.

Although prices of 6-inch SiC wafers have now stabilized, signs of a short-term recovery remain unclear. Taiwanese manufacturers are currently focused on developing 8-inch SiC wafers, with the 2025 market outlook still considered cautious, although expectations are set for a significant improvement in 2026.

Regarding recent developments in the US Chip and Science Act, Hsu noted that GlobalWafers has not received any notification of changes to the subsidy policy. The company remains committed to its globalization strategy, planning to build new facilities in the United States to locally supply silicon wafers for advanced processes, silicon photonics and robotics applications. This plan, launched in 2022, remains unchanged and is consistent with the US government’s goals for the semiconductor industry.

Learn more:6-inch SiC wafer prices hold steady

3. Murata considers moving some manufacturing capacity to India

Murata Manufacturing is considering relocating part of its manufacturing capacity to India to cope with the changing global supply chain and growing market demand. This Japanese company, a leading manufacturer of multi-layer ceramic capacitors (MLCC), is headquartered in Kyoto.

Murata President Norio Nakajima stated that the company has seen rising demand in India and customers are demanding more production abroad, especially to maintain business operations and stabilize the supply chain. Nakajima said

“Even though most of our newest capacitors are made in Japan, we can reduce that market share from 60% to about 50% in the coming years.”

Murata has leased a factory at the OneHub Chennai Industrial Park in Tamil Nadu, India, with plans to begin packaging and shipping ceramic capacitors in the fiscal year starting April 2026. The 10 billion yen ($66 million) investment is a five-year commitment, aimed at assessing long-term demand in the Indian market before deciding whether to build a larger facility with expanded production capacity.

As demand for advanced chips in artificial intelligence and electric vehicles increases, sales of MLCCs used in these technologies are expected to increase along with the semiconductor market. Murata, with its leading market share in the global MLCC and induction markets, is poised for significant long-term profit growth.