Broadcom and Toppan Launch Singapore's First Advanced Chip Substrate Facility

SINGAPORE — U.S. semiconductor giant Broadcom and Japan's Toppan Holdings have officially opened Singapore's first advanced chip substrate facility, named Advanced Substrate Technologies (AST), ahead of schedule. This joint venture aims to bolster Singapore's role in the global semiconductor supply chain, particularly in the context of growing demand for artificial intelligence (AI) technologies.

The facility, located near Jurong Lake, spans approximately 95,000 square meters and is equipped to produce Flip Chip Ball Grid Array (FC-BGA) substrates. These substrates are critical components that facilitate high-density connections between chips and printed circuit boards, making them essential for high-performance applications such as graphics processing units (GPUs) and AI chips. The opening ceremony took place on September 29, 2023, with Singapore's Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, in attendance.

“These positions will allow Singaporeans to gain exposure to advanced manufacturing techniques and accumulate expertise that can drive career growth.”Gan Kim Yong, Deputy Prime Minister of Singapore

According to officials, the new plant is expected to create over 330 jobs, including positions for engineers and skilled technicians. Gan highlighted that these roles will provide Singaporeans with opportunities to engage with advanced manufacturing processes and develop specialized skills in the semiconductor industry. He stated that these positions will allow Singaporeans to gain exposure to advanced manufacturing techniques and accumulate expertise that can drive career growth.

The establishment of AST is particularly timely, as the semiconductor industry faces significant supply bottlenecks exacerbated by the COVID-19 pandemic and the surge in AI hardware demand. Broadcom's President of Semiconductor Solutions Group, Charlie Kawwas, noted that the investment in this facility not only expands production capacity but also focuses on research and development to innovate substrate technologies. He remarked that the completion of this facility will enhance their flexibility and differentiation in the supply chain, especially given the concentration of key customers in Southeast Asia.

AST's operations will complement Toppan's primary production center in Niigata, Japan, addressing the growing global demand for advanced substrates. The facility's strategic location in Singapore is expected to facilitate timely deliveries to clients in the region. Kawwas emphasized the importance of this venture, stating that the semiconductor sector's innovation and investment have lagged behind the rising demand for wafers and substrates.

“The completion of this facility will enhance our flexibility and differentiation in the supply chain, especially given the concentration of key customers in Southeast Asia.”Charlie Kawwas, President of Semiconductor Solutions Group, Broadcom

Notably, Singapore is a crucial player in the global semiconductor landscape, contributing to approximately 6% of its economy. The country produces about 10% of the world's chips, positioning itself as a vital node in the semiconductor supply chain. The opening of AST aligns with broader efforts within Singapore to strengthen its semiconductor capabilities and maintain its competitive edge in the industry.

As the global semiconductor market continues to evolve, other industry players are also ramping up investments in substrate production. For instance, Samsung Electro-Mechanics has announced plans to expand its FC-BGA substrate capacity for AI servers.