China imported $407 million worth of chip-making components from Singapore in April.
Singapore is benefiting from the ongoing technology war between the US and China, especially in the semiconductor sector.
According to Bloomberg, recent data from China Customs revealed that China imported $407 million worth of chip-making machinery from Singapore in April, marking the highest value since August 2022. This number represents a 9.6% increase from March, in contrast to the general trend of decreasing semiconductor exports to China.
In contrast, China’s total imports of chip-making equipment in April fell 27% year-on-year.
Besides, Singapore saw 3.5% growth in integrated circuit chip shipments to China in April compared to March.
Beh Swan Gin, Chairman of the Economic Development Board of Singapore, said that Singapore’s goal is to secure a certain market share in the chip manufacturing industry, investing in semiconductor manufacturing technology. This goal stems from the growing interest of leading global electronics and technology companies in the search for geographical diversification.
The world’s leading manufacturers and technology companies are pursuing a strategy of location diversification, not only operating in China but also fragmenting in regional chip manufacturing hubs such as Taiwan, Korea. This is a good opportunity for growth for Singapore.
TSMC is considering building a factory in the country to produce 12-inch silicon wafers. The decision comes as Singapore offers tax incentives and competitive production costs. In addition, suppliers to ASML Holding are also considering setting up factories in Southeast Asia instead of China.
While the tension between the US and China still shows no sign of abating, Singapore has expressed its willingness to mediate and promote to build relations between the two economic powers.
The complex interplay of many factors has fueled the technology war between the US and China. Another extremely important aspect is the trade imbalance between the two countries, especially in the technology sector.
The US has long accused China of engaging in unfair trade practices, such as intellectual property theft and forced technology transfers. These have raised concerns about protecting American innovation and losing economic advantages.
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