Vanguard, NXP Evaluate Second Singapore Chip Fab Amid Tight Supply
VSMC held the opening ceremony for its first 12-inch Singapore fab on Sept. 28 after about 22 months of construction beginning in December 2024.
Vanguard International Semiconductor Corp. and NXP Semiconductors are evaluating a second wafer fabrication plant in Singapore as semiconductor supply remains tight amid artificial intelligence and data-center expansion.
Their joint venture, VSMC, held the opening ceremony for its first 12-inch Singapore fab on Sept. 28 after about 22 months of construction beginning in December 2024. The facility represents a $7.8 billion investment and is designed for monthly output of 44,000 wafers.
The plant will manufacture chips using processes ranging from 40 nanometers to 130 nanometers. Its technologies include mixed-signal, power-management and embedded-flash production for automotive and industrial applications.
The facility is expected to create about 1,600 local jobs. It also expands Vanguard’s manufacturing from 8-inch to 12-inch wafers while supporting hardware for Physical AI applications in automotive and infrastructure sectors.
VSMC’s proposed second facility remains in an early evaluation stage. Its process technology could be more advanced than that of the first fab, but VSMC has not disclosed a specific construction budget or overall capital-spending figure.
The eventual cost will depend on the technology generation, equipment configuration and customer product requirements.
Taiwan Semiconductor Manufacturing Co. provided technology licenses and facilities personnel for the first project. Taiwanese engineering companies also supported automation, facility systems, specialty-gas and chemical supplies, clean-room construction, and mechanical and electrical work.
