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TSMC-backed Vanguard weighs second chip plant in Singapore amid AI demand

by Soma Debnath - IT Prime News
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Vanguard International Semiconductor (VIS), a Taiwan Semiconductor Manufacturing Company (TSMC)-backed chipmaker, is considering building a second semiconductor manufacturing plant in Singapore as demand for chips used in artificial intelligence and other applications continues to grow.

The development comes as VisionPower Semiconductor Manufacturing Company (VSMC), a joint venture between VIS and Dutch chipmaker NXP Semiconductors, opened its first 300mm wafer fabrication plant in Singapore on September 28.

VSMC Chairman Leuh Fang said the company is considering a second facility to meet rising demand for semiconductors. He also said the current shortage of chips linked to the AI boom could continue for an extended period.

The first VSMC facility is located at Tampines Wafer Fab Park. The plant has already produced its first sample lot and is expected to create around 1,600 jobs. At full capacity, it is projected to manufacture approximately 44,000 12-inch wafers per month by 2029.

The facility will manufacture chips using process technologies ranging from 130 nanometres to 40 nanometres. These will support applications including high-performance computing, mobile devices, automobiles, industrial equipment and consumer electronics.

Unlike the most advanced processors used for AI computing, the chips produced at the Singapore facility are focused on areas such as power management, analogue functions, mixed-signal applications and interposers. These components are important for systems that connect processors, manage power and enable AI workloads across data centres, vehicles, industrial equipment and other devices.

The companies are also positioning the facility to benefit from the growth of physical AI, in which AI systems interact with the physical world through vehicles, robots, factories and other infrastructure. NXP CEO Rafael Sotomayor said the plant would support technologies used in smart devices and physical AI systems.

VIS is approximately 19% owned by TSMC, while NXP is one of the world's major semiconductor suppliers for automotive, industrial, mobile and communications applications. NXP also has operations in Singapore and is a major stakeholder in another local chipmaking venture with TSMC.

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