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Business Times
a day ago
- Business
- Business Times
AEM, UMS, Frencken lead semiconductor stock surge; robust weekly gains ride on domestic, global tailwinds
[SINGAPORE] Semiconductor listcos were trading higher on Friday (Jun 27) morning, notching double-digit gains over the week as a slew of domestic and global developments spelt potential tailwinds for the chip industry. A buoyant sector outlook, pushback against tariff threats and the opening of a S$123 million facility enabling Singapore to produce the chips were among the developments that could prove favourable for semiconductors. By late morning, AEM , UMS and Frencken were among the most heavily traded counters on the Singapore Exchange (SGX). As at 11.21 am, UMS was up 7.9 per cent at S$1.36 with 12.6 million shares having changed hands, as AEM climbed 9.9 per cent to S$1.56 and Frencken advanced 5.7 per cent to S$1.29. Grand Venture Technology was up by 1.6 per cent at S$0.95 and Venture rose 1.4 per cent to S$11.50. On a weekly basis, AEM surged 26.8 per cent from its closing price of S$1.23 on Jun 20. UMS was up 12.4 per cent from S$1.21, while Frencken gained 12.2 per cent from S$1.15. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The launch of the National Semiconductor Translation and Innovation Centre for Gallium Nitride – dubbed NSTIC (GaN) – on Thursday is set to give local semiconductor firms a leg-up. It comes as part of a broader national plan to uplift the semiconductor sector, which currently accounts for nearly 6 per cent of Singapore's gross domestic product. At the launch of NSTIC (GaN), Minister-in-charge of Energy and Science & Technology Tan See Leng highlighted that the domestic semiconductor sector has potential to be more competitive globally. For the month of May, semiconductors recorded the second-largest jump in factory output among segments under the linchpin electronics sector, at 3.4 per cent, behind the infocomms and consumer electronics segment which recorded the largest jump of 42.6 per cent. Earlier in June, semiconductor maker Frencken announced plans to build a new S$63 million manufacturing facility in Kaki Bukit to scale up its business in Singapore. On Thursday, semiconductor test solutions provider AEM lifted its revenue guidance for its first half ending June to between S$185 million and S$195 million, from an earlier range of S$155 million to S$170 million, following an unexpected pull-in of orders into FY2025. Beyond Singapore, semiconductors also look set to see tailwinds. A Morningstar Equity research report on Friday noted the global semiconductor sector's upbeat outlook, on the back of booming artificial intelligence demand and recovery from 2024's cyclical downturn. These factors could offset any tariff-related headwinds that semiconductors face, the report said, as it pointed to chip orders having rebounded from the 'tariff tantrum'. Moreover, US President Donald Trump's threats to lay tariffs on imported semiconductors have drawn far-reaching blowbacks from across the globe. Stakeholders protested the potential move, which threatens to snarl supply lines and raise costs for consumers, given the ubiquity of the chips which are now found in nearly everything from microwaves to smartphones.
Business Times
a day ago
- Business
- Business Times
Singapore semiconductor stocks soar, notch weekly surge on boost from domestic, global tailwinds
[SINGAPORE] Semiconductor listcos were trading higher on Friday (Jun 27) morning, notching double-digit gains over the week as a slew of domestic and global developments spelt potential tailwinds for the chip industry. A buoyant sector outlook, pushback against tariff threats and the opening of a S$123 million facility enabling Singapore to produce the chips were among the developments that could prove favourable for semiconductors. By late morning, AEM , UMS and Frencken were among the most heavily traded counters on the Singapore Exchange (SGX). As at 11.21 am, UMS was up 7.9 per cent at S$1.36 with 12.6 million shares having changed hands, as AEM climbed 9.9 per cent to S$1.56 and Frencken advanced 5.7 per cent to S$1.29. Grand Venture Technology was up by 1.6 per cent at S$0.95 and Venture rose 1.4 per cent to S$11.50. On a weekly basis, AEM surged 26.8 per cent from its closing price of S$1.23 on Jun 20. UMS was up 12.4 per cent from S$1.21, while Frencken gained 12.2 per cent from S$1.15. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The launch of the National Semiconductor Translation and Innovation Centre for Gallium Nitride – dubbed NSTIC (GaN) – on Thursday is set to give local semiconductor firms a leg-up. It comes as part of a broader national plan to uplift the semiconductor sector, which currently accounts for nearly 6 per cent of Singapore's gross domestic product. At the launch of NSTIC (GaN), Minister-in-charge of Energy and Science & Technology Tan See Leng highlighted that the domestic semiconductor sector has potential to be more competitive globally. For the month of May, semiconductors recorded the second-largest jump in factory output among segments under the linchpin electronics sector, at 3.4 per cent, behind the infocomms and consumer electronics segment which recorded the largest jump of 42.6 per cent. Earlier in June, semiconductor maker Frencken announced plans to build a new S$63 million manufacturing facility in Kaki Bukit to scale up its business in Singapore. On Thursday, semiconductor test solutions provider AEM lifted its revenue guidance for its first half ending June to between S$185 million and S$195 million, from an earlier range of S$155 million to S$170 million, following an unexpected pull-in of orders into FY2025. Beyond Singapore, semiconductors also look set to see tailwinds. A Morningstar Equity research report on Friday noted the global semiconductor sector's upbeat outlook, on the back of booming artificial intelligence demand and recovery from 2024's cyclical downturn. These factors could offset any tariff-related headwinds that semiconductors face, the report said, as it pointed to chip orders having rebounded from the 'tariff tantrum'. Moreover, US President Donald Trump's threats to lay tariffs on imported semiconductors have drawn far-reaching blowbacks from across the globe. Stakeholders protested the potential move, which threatens to snarl supply lines and raise costs for consumers, given the ubiquity of the chips which are now found in nearly everything from microwaves to smartphones.
Business Times
a day ago
- Business
- Business Times
S'pore semiconductor stocks soar, notch weekly surge on boost from domestic, global tailwinds
[SINGAPORE] Semiconductor listcos were trading higher on Friday (Jun 27) morning, notching double-digit gains over the week as a slew of domestic and global developments spelt potential tailwinds for the chip industry. A buoyant sector outlook, pushback against tariff threats and the opening of a S$123 million facility enabling Singapore to produce the chips were among the developments that could prove favourable for semiconductors. By late morning, AEM , UMS and Frencken were among the most heavily traded counters on the Singapore Exchange (SGX). As at 11.21 am, UMS was up 7.9 per cent at S$1.36 with 12.6 million shares having changed hands, as AEM climbed 9.9 per cent to S$1.56 and Frencken advanced 5.7 per cent to S$1.29. Grand Venture was also up by 1.6 per cent at S$0.95 and Venture rose 1.4 per cent to S$11.50. On a weekly basis, AEM surged 26.8 per cent from its closing price last Friday, on Jun 20, of S$1.23. UMS was up 12.4 per cent from S$1.21 while Frencken gained 12.2 per cent from S$1.15. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The launch of the National Semiconductor Translation and Innovation Centre for Gallium Nitride - dubbed NSTIC (GaN) - on Thursday is set to give local semiconductor firms a leg-up. It comes as part of a broader national plan to uplift the semiconductor sector, which currently accounts for nearly 6 per cent of Singapore's gross domestic product. At the launch of NSTIC (GaN), Minister-in-charge of Energy and Science & Technology Tan See Leng highlighted that the domestic semiconductor sector has potential to be more competitive globally. For the month of May, semiconductors recorded the second largest jump in factory output among segments under the linchpin electronics sector, at 3.4 per cent, behind the infocomms and consumer electronics segment which recorded the largest jump of 42.6 per cent. Earlier in June, semiconductor maker Frencken also announced plans to build a new S$63 million manufacturing facility in Kaki Bukit to scale up its business in Singapore. On Thursday, semiconductor test solutions provider AEM lifted its revenue guidance for its first half ending June to between S$185 million and S$195 million, from an earlier range of S$155 million to S$170 million, following an unexpected pull-in of orders into FY2025. Beyond Singapore, semiconductors also look set to see tailwinds. A Morningstar Equity research report on Friday (Jun 27) noted the global semiconductor sector's upbeat outlook, on the back of booming artificial intelligence demand and recovery from 2024's cyclical downturn. These factors could offset any tariff-related headwinds that semiconductors face, the report said, as it pointed to chip orders having rebounded from the 'tariff tantrum'. Moreover, the US President Donald Trump's threats to lay tariffs on imported semiconductors have drawn far-reaching blowbacks from across the globe. Stakeholders protested the potential move, which threatens to snarl supply lines and raise costs for consumers, given the ubiquity of the chips which are now found in nearly everything from microwaves to smartphones.
Straits Times
04-06-2025
- Business
- Straits Times
Chipmaker Frencken to build new $63 million plant in Kaki Bukit
The new facility will 'lay a stronger foundation' for the mainboard-listed company to continue to expand its mechatronics business in Singapore. PHOTO: BT FILE SINGAPORE - Singapore-listed semiconductor maker Frencken will invest $63 million to build a new and larger five-storey manufacturing facility in Kaki Bukit. The new site will be built on a plot of land leased from Jurong Town Corporation (JTC) to its subsidiary ETLA for a period of 33 years, from Aug 18, 2025, the group said in a bourse filing on June 3. The new facility will 'lay a stronger foundation' for the mainboard-listed company to continue to expand its mechatronics business in Singapore. The new facility will expand its production resources to support existing and new programmes, as well as strengthen its position with key customers in the coming years, it added. In particular, the new plant will have larger clean rooms, allowing the group to scale up its business with key wafer fabrication equipment customers. 'The group believes Singapore will remain a vital and strategic base for its manufacturing operations and future growth,' said Frencken in the statement. 'The new facility will continue to ensure the group's proximity to its semiconductor customers in Singapore.' Once it is completed, Frencken plans to progressively relocate and consolidate its manufacturing operations in Singapore, which are currently in separate facilities in Changi North and Seletar Aerospace Link. Frencken will fund the construction and fit-out work of the new plant through internally-generated resources and borrowings. As part of the lease agreement with JTC, ETLA has to invest at least $19.5 million, of which $13.3 million must be spent on new plant and machinery. This investment must be fulfilled within three years of the commencement date. The remaining amount can consist of the net book value of ETLA's existing plant and machinery that will be relocated to the new site. The Kaki Bukit plot has a land area of 12,318 square metres (sq m), and is expected to be developed to a gross plot ratio of not less than 2.19 but not exceeding 2.5. The facility is estimated to yield a gross floor area of 28,594 sq m, subject to the final design and development plans. Construction will begin in the third quarter of 2025, and is expected to be completed by the first quarter of 2027. Shares of Frencken closed flat at $1.14 on May 3 before the announcement. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
