SINGAPORE – Japanese manufacturer Toppan Holdings broke ground for a semiconductor packaging materials plant in Singapore on March 14 that will begin operations at the end of 2026 and create as many as 350 new jobs.
The factory in Pesawat Drive in Jurong will make substrates that are used in semiconductor products such as network switches, artificial intelligence and machine-learning devices.
It will be the first such plant in Singapore, and the first investment by Toppan outside Japan to produce these substrates.
The new jobs will include at least 200 engineers and technicians, while the rest will be operators and facility managers.
Toppan did not disclose the capital investment in the plant, but Japanese newspaper Nikkei reported that the figure is estimated at 50 billion yen ($450 million). Nikkei also said that the factory’s capacity will increase in line with demand, with total investment expected to surpass 100 billion yen.
Toppan’s Singapore venture is also supported by Broadcom, one of its top customers for the substrates.
Broadcom is a global technology firm that designs, develops and supplies a broad range of semiconductor, enterprise software and security solutions. It was headquartered in Singapore until 2018.
Mr Tetsuro Ueki, senior managing executive officer and head of Toppan’s electronics division, told the groundbreaking ceremony on March 14 that the company chose Singapore as it looked for venues outside Japan to boost the production of what are known as Flip Chip Ball Grid Array substrates.
The chip substrate market is projected to reach $29 billion by 2028, up 90 per cent from 2022, French research firm Yole Intelligence estimates.
“Singapore was the most attractive destination for this investment as it is where most of our top clients and partners are located. We also wanted a production line outside Japan for business continuity purposes and found Singapore as the most appropriate location,” said Mr Ueki.
He added that the plant, which will be run by a new Toppan subsidiary called Advanced Substrate Technologies (AST), will be more advanced than its similar facility in Niigata, Japan, as it will use state-of-the-art automation technology.
Dr Charlie Kawwas, the president of Broadcom’s semiconductor solutions group, said his company’s involvement in the plant is to secure a regular supply of advanced substrate materials after experiencing shortages during the pandemic.
“As Toppan’s largest customer for the substrates, we welcome the additional capacity (the plant) brings,” he said.
Dr Kawwas noted that Broadcom has many partners that make other chip components – such as foundries that manufacture integrated circuits, and companies that test and assemble the chip – in Singapore.
“Having secured substrate supply here in Singapore and being able to package it all in the same place will reduce my lead time to customers and reduce the cost,” he said.
Mr Pee Beng Kong, executive vice-president of the Economic Development Board, said the production of this new substrate in Singapore will increase business opportunities for existing players in the semiconductor ecosystem here and may also attract new investors in the supply chain.
“AST’s new facility is a significant addition to Singapore’s semiconductor ecosystem, which today already hosts a diverse range of manufacturers and suppliers,” he added.
Mr Pee expects the new investment will also create new jobs at other partners of Toppan and Broadcom in Singapore as they get involved in the new substrate business.
