Title: Designing Industrial Policy: The Case of Singapore’s Semiconductor Ecosystem

Speaker: Yongwook Ryu
Assistant professor of International Politics at Lee Kuan Yew School of Public Policy, National University of Singapore

Abstract: The intensifying US-China tech competition, coupled with the experience of supply chain disruptions due to the Covid-19 pandemic, has forced governments to develop the semiconductor sector in their own territories.  As a result, many adopted their own industrial policies to encourage domestic and foreign investment in the sector.  But how should government design industrial policy?  The case of Singapore’s approach developing its semiconductor sector reveals that industrial policy should utilize the nation’s strengths rather than merely focusing on moving up the value chain.  Rather than seeking to inculcate national champions, Singapore has used its strategic location and a business-friendly and stable business environment to attract global players to be established in Singapore, thereby creating the entire supply chains of chip production, albeit at low scale.  The case of Singapore shows that there is no one-size-fits-all industrial policy.  Instead, the government must carefully assess its own vulnerabilities and needs, and then consider a comprehensive package to attract foreign investment and talent, not merely financial incentives such as subsidies or low tax rates.

About the speaker:
Dr. Yongwook RYU is an assistant professor of International Politics at Lee Kuan Yew School of Public Policy, National University of Singapore.  He specializes in international politics, with a focus on East Asia and Southeast Asia.  His recent research focuses on economic security relating to global supply chains and the tech competition between the US and China, including the semiconductor sector and AI.