According to Reuters, in the Sino-US trade war, the political concerns of Chinese telecommunications company Huawei and consumer demand have slowed down. Singapore's chip makers have begun to slow production and lay off hundreds of people.

Ang Wee Seng, executive director of the Semiconductor Industry Association of Singapore (SSIA), said, "We see this recession is different from the past."

He said that he is "preparing for the worst situation" and has his staff on standby to help any laid-off workers find a new job.

John Nielsen, CEO of Singapore-based test and assembly chip company UTAC, told Reuters that he has launched an “integration process” in Singapore, which could result in a 10-20% reduction in the number of employees in the city by the end of the year.

“We are taking appropriate action to ensure a future for our business in Singapore,” Nielsen said, adding that they may also increase the days of factory closures and unpaid leave for workers.

Nielsen said that although the global industry is affected, Singapore's problems are even more serious due to high management costs such as rent, wages and utilities.

According to industry association SEMI, global semiconductor sales are expected to decline by 12-13% in 2019, the largest decline since the dotcom bubble burst in 2001.

Although the development of semiconductors tends to fluctuate due to the demand for the latest technology products, Sino-US trade tensions have intensified this downward trend.

SSIA's Ang said that Singapore's companies are directly affected by these measures and are in trouble.

Apple supplier AMS is another company that has laid off employees in Singapore this year.

Company spokesperson Patricia Moosburger responded to Reuters' email question: "We have indeed reduced Singapore's staffing to accommodate the more calm consumer demand trends in the first half of the year, and The efficiency of the reaction manufacturing is improved."

Moosburger declined to comment on the details, but Singapore media reported that as many as 600 people were cut.

According to official data, the semiconductor industry accounted for 28% of Singapore's total manufacturing output in 2018, accounting for 76% of its electronics production.

Data released last week showed that Singapore's exports fell to a six-year low in June, mainly due to a 31.9% decline in electronics exports, the biggest decline in the industry in a decade.