TSMC-backed Vanguard International Semiconductor and Dutch chip giant NXP are set to build a USD 7.8 billion wafer manufacturing plant in Singapore. Vanguard will hold a 60% stake in the joint venture, named VisionPower Semiconductor Manufacturing Company (VSMC), while NXP will hold the remaining 40%. Construction of the plant is expected to commence in the second half of 2024, with production slated to begin in 2027, creating approximately 1,500 jobs.
The VSMC plant will produce wafers for various markets, including automotive, industrial, consumer, and mobile devices. TSMC will provide the necessary manufacturing technologies for the project. Vanguard and NXP will invest USD 2.4 billion and USD 1.6 billion, respectively, with an additional USD 1.9 billion allocated to support the plant’s long-term capacity. The remaining funding will be sourced from third parties.
Singapore continues to attract significant investments from semiconductor companies due to its business-friendly environment. In recent years, GlobalFoundries and Taiwan’s United Microelectronics Corp have made substantial investments in Singapore, with new chip fabrication plants established. The strategic investments in Singapore’s semiconductor sector highlight the country’s growing importance in the global semiconductor industry amidst shifting geopolitical dynamics.
(Sources: Forbes; CNA)
