Singapore has inaugurated its first advanced chip substrate manufacturing facility as part of efforts to expand its role in the global semiconductor supply chain amid growing demand driven by artificial intelligence (AI) and networking applications. The Advanced Substrate Technologies (AST) plant officially opened on September 29 in the Jurong Lake District, covering 95,000 square meters and producing Flip Chip Ball Grid Array (FC-BGA) substrates.

FC-BGA substrates are critical components that enable high-density connections between semiconductor chips and circuit boards, enhancing data speeds and signal integrity. AST is a joint venture between Japan’s Toppan Holdings and American chip-design firm Broadcom.

While Toppan did not disclose the exact investment amount for the plant, Japanese media outlets reported in 2024 that the initial capital expenditure was around 50 billion yen (approximately S$405 million), with plans for future expansions expected to push total investment beyond 100 billion yen. The facility also includes research and development capabilities to support evolving performance requirements and collaborates closely with local technology institutions.

AST has already employed more than 300 staff, including engineers and skilled technicians, and plans to increase hiring as high-volume production ramps up later in 2026. The plant’s production capacity will expand further to address the accelerating global demand for advanced substrates, driven by next-generation computing and AI data centers.

“The investment underscores Toppan and Broadcom’s long-term commitment to Singapore as a key hub in the global manufacturing network and enhances semiconductor supply chain resilience,” said Yoshiyuki Iida, AST’s chief executive. The company pointed to mounting substrate shortages worldwide and positioned the new facility as addressing a critical bottleneck in the industry.

The Singapore facility will complement Toppan’s primary production site in Niigata, Japan. At the opening ceremony, Deputy Prime Minister Gan Kim Yong highlighted the facility’s role in diversifying Singapore’s semiconductor ecosystem, which already includes chip design, wafer fabrication, equipment manufacturing, and advanced packaging capabilities.

Gan emphasized Singapore’s established network of suppliers, research institutions, and skilled workforce as a strong foundation enabling companies to undertake increasingly sophisticated work. “As technology advances and global competition intensifies, we must build on this foundation to develop capabilities that are difficult to replicate,” he said.

AST’s specialised production complements existing semiconductor activities in Singapore, broadening the country’s contribution to the global industry, Gan added. Broadcom’s president of semiconductor solutions, Charlie Kawkus, noted that aside from being a joint venture partner, Broadcom will also be AST’s primary customer. He said the plant provides the U.S. with greater flexibility and supply chain resilience amid increasing demand for AI and networking chips.

Singapore is an important node in the semiconductor supply chain, producing about 10% of global semiconductor chips and one-fifth of semiconductor equipment annually. The country’s semiconductor sector accounts for nearly 6% of its gross domestic product and employs over 35,000 people, according to the Economic Development Board (EDB).

EDB chairman Png Cheong Boon stated that the agency will continue collaborating with Toppan, Broadcom, and AST to develop new capabilities, support rising global semiconductor demand, and create local jobs and opportunities.