Singapore has unveiled billions of dollars of semiconductor-related investments over the past year - but it still has far to go if it wants to match Taiwan and other chipmaking powerhouses in Asia.

Known in Asia as a prominent financial and technology hub, Singapore's peers in the region dwarf it in chipmaking. The city-state is attempting to shore up its electronics sector, having set a target to grow its manufacturing industry by 50% by 2030, with the semiconductor segment featuring strongly in the effort. Foreign investment will play a key role in reaching the target.

U.S. semiconductor maker GlobalFoundries announced in June 2021, that it would invest over $4 billion in Singapore to expand its wafer plan as it attempts to tackle a global microchip shortage.

GlobalFoundries' announcement came after German chipmaker Infineon Technologies picked Singapore as its base for developing artificial intelligence applications, with an investment commitment of 27 million Singapore dollars ($20.2 million) announced in December 2020.

Taiwan generates 64% of the world's nearly $90 billion in foundry revenue, with South Korea taking up 18%, China 6% and other countries 12%. A foundry makes chips for other companies.

South Korea's Samsung was second after TSMC, commanding 17%. While Singapore is poised to benefit from GlobalFoundries' multibillion-dollar investment, which will inject new jobs and buzz to the country's manufacturing sector, GlobalFoundries accounts for just 5% of the global market.

Singapore accounts for about 5% of global wafer fabrication capacity, according to Alvin Tan, minister of state at the Trade and Industry Ministry, who spoke at a meeting of semiconductor industry players in July, that Singapore also holds 19% of the global market for semiconductor equipment -- the tools used to make chips.

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