On June 2, 2025, Dutch high-tech contract manufacturer VDL Enabling Technologies Group (VDL ETG) has opened a third facility in Singapore and announced plans to invest an additional S$100 million (US$74 million) over the next five years to expand its operations and workforce.

The new 20,000-square-meter plant, named SQ1, is located in the Pioneer area and features office space, warehousing and logistics, and a cleanroom for producing systems and modules used in semiconductor manufacturing equipment. The facility boosts VDL's local manufacturing capacity by 30% and is expected to support the company's projected revenue growth from S$400 million to S$1 billion within the next five to six years.

VDL ETG is a key supplier to ASML, the world's leading lithography equipment maker. It manufactures critical precision modules for ASML's chipmaking systems, making this expansion strategically important as global demand for semiconductor tools continues to surge.

VDL, which has had a presence in Singapore since 1970, currently employs around 800 staff locally and plans to hire more than 400 additional workers over the next five years. New roles will span engineering, supply chain, systems design, manufacturing, and administration, with SQ1 designed as a collaborative hub to support innovation across technical teams.

“Our latest expansion at SQ1 reflects not only investment in infrastructure, but a deliberate strategy to build a smarter, more resilient manufacturing ecosystem with strong local supplier partnerships,” said Chiam Sing Chung, Managing Director of VDL ETG Singapore.

The company also plans to upgrade its two existing Singapore facilities with investments in new hardware, machinery, and cleanroom capabilities.

At the opening ceremony, Jermaine Loy, Managing Director of Singapore's Economic Development Board (EDB), highlighted the longstanding economic ties between Singapore and the Netherlands, which mark 60 years of diplomatic relations in 2025. He emphasized that Dutch firms like VDL have played a vital role in Singapore's transformation into a global manufacturing hub.

Singapore's semiconductor industry currently contributes 6–7% of GDP and employs around 35,000 workers. Roughly 10% of the world's chips and 20% of semiconductor equipment are produced in the city-state annually.

“The launch of SQ1 enables us to develop next-generation equipment to enhance semiconductor production capabilities, improving yields and process reliability for global customers,” said VDL in a statement.

With operations in 20 countries, VDL continues to strengthen its position as a key global player in the high-tech manufacturing value chain.