Electronics and Biomed seize $12.1b as Singapore anchors AI chip demand

Manufacturing led FAI as semiconductor firms expanded facilities for global AI servers.

Manufacturing dominated Fixed Asset Investment in Singapore in 2025, contributing $12.1b of total commitments, as semiconductor firms expanded facilities to meet global AI server demand, according to the Annual Economic Survey 2025 published by the Ministry of Trade and Industry.

Within manufacturing, the electronics cluster led with $4.7b, followed closely by the biomedical manufacturing cluster with $4.4b.

In the services sector, the research and development cluster attracted $963m in FAI commitments, supporting innovation and technology-driven growth, the report noted.

Total Business Expenditure reached $8.9b for the year, with the services sector accounting for the largest portion at $7b.

The headquarters and professional services cluster contributed $5.5b, whilst the research and development cluster added $1.1b. Amongst manufacturing clusters, electronics led TBE with $626m.

Foreign investors from the “others” region were the largest source of commitments, providing $6.2b of FAI and $5.1b of TBE. Investors from Europe and the United States also contributed significantly, the AES 2025 stated.

When fully implemented, these projects are expected to generate $18.0b in value-added annually and create more than 15,700 jobs, according to the Ministry of Trade and Industry.

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Ministry of Trade and Industry

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