,Singapore

Electronics demands boost manufacturing performance by 11.2% in August

Thanks to the global semiconductor demand, experts said.

Singapore’s industrial production grew by 11.2% year-on-year (YoY) in August 2021, according to the latest Economic Development Board (EDB) report. Several experts pointed to a global semiconductor demand as the reason for this growth. 

OCBC Treasury Research puts this performance on the strength of the electronics performance. 

“August manufacturing output surprised on the side at 11.2% YoY (5.7% mom sa), aided by strong electronics performance (15.4% yoy). This is very close to our forecast of 11.3% YoY (7.2% mom sa), but higher than the Bloomberg consensus forecast of 8.2% yoy (3.1% mom sa). Nevertheless, it marked a moderation from July’s revised readings of 16.4% YoY (-2.8% mom sa),” OCBC said.

OCBC also stated that this performance was even strong enough to offset the weak biomedical cluster performance that had an output shrink of 0.6% YoY, after a steller 78.6% growth in July.

“Notably, the electronics cluster’s outperformance was underpinned by strong expansion in infocomm and consumer electronics (31.6% YoY), other electronics modules (24.6% YoY) and semiconductors (16.8% YoY). The latter is encouraging given recent news reports of chip shortages being attributed to factories being shut due to COVID outbreaks in Malaysia and Vietnam. Even the US is trying to get more data from US chipmakers to figure out who may be potentially hoarding supplies, so the global chip shortage issue has not been resolved and would be something to still watch going ahead,” it added.

For its part, UOB said that these clusters, the electronics and precision engineering, had strong performances due to strong global demand for semiconductor-related products

“Singapore’s electronics and precision engineering clusters remained to be the star performers on the back of strong global demand for semiconductor-related products. The precision engineering cluster rose 22.9% YoY, the fastest pace in three months. According to the media release by the EDB, the higher output of semiconductors and industrial processes equipment lifted the precision engineering cluster, while a strong uptick in semiconductor (+16.8% YoY) production supported the overall electronic segment.

UOB said, "The expansion in Singapore’s industrial production is also reinforced by a favourable export backdrop. Whilst non-oil domestic exports decelerated to a growth of 2.7% YoY (-3.6% m/m sa) in August 2021, it still marked the ninth straight month of expansion. Electronic exports rose 16.7% YoY in August 2021, led by shipments of semiconductor-related products such as integrated circuits, diodes, and transistors and disk drives. The positive global export backdrop seen to date is expected to buttress Singapore’s external-facing industries, while higher commodity prices may provide the fillip to overall export value for the year ahead."

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Module integration and completion are not part of its responsibilities.
The company says it will continue to welcome feedback from workers.
OneMap3D data from ERA will be incorporated into its RealtyWatch mobile apps
$500,000 was contributed to the library's Green Grove showcase.
He has over 25 years of experience in business and risk roles.
The country also won 'Best Seaport in Asia' for the 33rd time.
Flight bookings were made available on 22 October.
Sembcorp Industrialshowed the most growth.
Analysts said there are three factors that drove the price growth.
Prices of private residential properties rose by 1.1% in Q3, marking the sixth consecutive quarter of growth.
72% of Singaporeans were aware of the term 'ESG.'
This strong performance was due to the recent acquisitions by the company.