Singapore to invest $750 million in semiconductor R&D center

Singapore will invest approximately S$1 billion ($744.8 million) to establish a new semiconductor research and development center, Prime Minister Lawrence Wong announced in his budget speech. The initiative aims to drive industry innovation and technological advancements. Wong noted that leading global technology firms are increasingly interested in expanding their operations in Singapore, particularly in emerging fields such as artificial intelligence (AI) and quantum computing.

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 enhance collaboration between local enterprises and international technology firms, fostering 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 enterprises, supporting expansion and innovation in the technology sector.

Beyond semiconductors, Singapore is making significant infrastructure and energy investments. The government announced a S$5 billion expansion plan for Changi International Airport to bolster the country's role as a global aviation hub. Another S$5 billion will be allocated to the Future Energy Fund to support sustainable energy development.

To attract companies to list and invest in the local stock market, Singapore is introducing tax incentives. Domestic companies listed in Singapore will receive corporate income tax rebates, while fund management firms will benefit from preferential tax rates to enhance the competitiveness of the capital market.