VSMC

Semiconductors · Manufacturing · AI Hardware

Expansion

VSMC opens first $7.8B semiconductor plant in Singapore

The plant's capacity is already sold out, prompting plans for a second facility as demand grows for older-node chips that power physical AI devices.

• VisionPower Semiconductor Manufacturing Company (VSMC) opened its first 300mm wafer fab in Tampines, Singapore, a $7.8 billion investment.
• VSMC is a joint venture formed in September 2024 by Taiwan's TSMC-backed Vanguard International Semiconductor (60%) and Dutch chipmaker NXP Semiconductors (40%), which gets dedicated capacity for its automotive and industrial chips.
• Rather than cutting-edge AI logic chips, the fab makes 40nm-130nm 'specialty' chips for mixed-signal, power management, analog and interposer uses in computing, automotive and industrial markets.
• Built in just 22 months, the fab has entered risk production with its first sample lot yielding above 99%; volume production starts Q1 2027, scaling to 44,000 wafers a month and 1,600 jobs by 2029.
• The new capacity is already 'sold out' due to surging AI infrastructure demand, and VIS is now eyeing a second Singapore facility.
• The plant underscores how the AI boom is lifting demand even for older, unglamorous chip nodes, as manufacturers diversify production geographically after pandemic-era shortages.