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BusinessActive · 21h

VSMC opens US$7.8B Singapore chip plant, plans second facility

Taiwan-Dutch joint venture VSMC begins production at Tampines fab, creating 1,600 jobs and eyeing expansion to meet AI-driven chip demand.

What to know

  • VSMC's US$7.8B Tampines fab opens with first sample lot produced; targets 44,000 wafers/month by 2029 and will create 1,600 jobs with 75% in professional/technical roles.
  • Plant produces specialty 40-130nm chips for power management, automotive, and industrial markets—not cutting-edge AI chips—addressing persistent global supply shortages.
  • VSMC chairman signals plans for second Singapore facility as chip demand driven by AI boom is expected to last longer than anticipated.
  • Singapore semiconductor sector now accounts for ~6% of economy, produces 1-in-10 chips globally, and is positioning itself as resilient node in supply chain.

“For VSMC, Singapore is a long-term strategic partner, and the investment reflects its confidence in the country's role in the global semiconductor industry.”

Leuh Fang, VSMC and VIS chairman · Channel News Asia ↗

VisionPower Semiconductor Manufacturing Company (VSMC) Semiconductor fabrication joint ventureVanguard International Semiconductor (VIS) Taiwan-based chipmaker, ~19% owned by TSMCNXP Semiconductors Dutch chipmakerLeuh Fang VSMC chairmanTan See Leng Singapore Minister for Trade and Industry

VSMC opens US$7.8B Singapore chip plant, plans second facility
straitstimes.com

How it unfolded 2 developments, newest first · click a bar or a number to jump articles

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  1. 2

    VSMC chairman signals plans for second Singapore plant

    Leuh Fang, VSMC chairman, told media the company is considering a second plant in Singapore to meet growing chip demand, citing expectations that the chip supply shortage amid the AI boom will last longer than previously anticipated.

    “The company is also considering a second plant in Singapore to meet growing chip demand. The chip supply shortage amid the AI boom is likely to last longer…”
    — Leuh Fang, VSMC chairman
    1. first by The Straits Times, 21h ago

  2. background

    VSMC opens first semiconductor fabrication plant in Singapore — VisionPower Semiconductor Manufacturing Company, backed by Taiwan's Vanguard International Semiconductor and Dutch chipmaker NXP, officially opened its US$7.8 billion fabrication plant in Tampines Wafer Park. The facility has produced its first sample lot and is set to produce 44,000 12-inch wafers monthly at full capacity by 2029, creating 1,600 jobs.

  3. 1

    VSMC commits to workforce development partnerships

    The company has established partnerships with leading Singapore universities for internships and professional training. It is creating pathways for fresh graduates and mid-career workers through Singapore's Workforce Development Agency career conversion programmes and the Ministry of Manpower's graduate industry traineeships (GRIT). Of the 1,600 new jobs, 75% will be professional, managerial, executive and technician roles.

    “While much of the attention today is on the most advanced logic chips that power artificial intelligence, specialty semiconductors are just as essential.”
    — Tan See Leng, Singapore Minister for Trade and Industry · source
    1. first by Channel News Asia, 21h ago

  4. background

    Singapore trade minister emphasizes specialty semiconductors' importance — Minister for Trade and Industry Tan See Leng noted that while attention typically focuses on advanced logic chips for AI, specialty semiconductors are equally essential. He highlighted that semiconductor industry demand is set to double to US$1.6 trillion by 2030, with growing demand for specialty chips driven by electrification, connected devices, and industrial automation.

  5. background

    VSMC plant to produce specialty chips for multiple markets — The Tampines facility will produce 40- to 130-nanometre chips rather than cutting-edge AI chips, focusing on mixed-signal, power management, and interposer applications for high-performance computing, mobile, automotive, and industrial sectors. Volume production begins Q1 2027, with full capacity reached by 2029.