Vanguard International Semiconductor (VIS) and NXP Semiconductors officially opened VSMC’s first 12-inch wafer fab in Singapore on Sept. 28, 2026. The plant carries total investment of $7.8 billion and was completed in about 22 months after construction began in December 2024. Planned monthly capacity stands at 44,000 wafers.
Taiwan’s fab engineering network was brought into the project
VSMC is a joint venture between VIS, a wafer foundry backed by Taiwan Semiconductor Manufacturing Co. (TSMC), and Dutch chipmaker NXP Semiconductors. Beyond technology licensing and facility manpower support from TSMC, the project also brought in Taiwanese engineering suppliers including Marketech International, CTCI Advanced Systems, United Integrated Services, and L&K Engineering.
According to the report, the Singapore fab is not only a key site in VIS’s expansion from 8-inch into 12-inch wafer foundry manufacturing. It also serves as a test of Taiwan’s ability to export a full semiconductor plant buildout model overseas. In the early stage of construction, TSMC dispatched facility teams to Singapore. Marketech International and CTCI Advanced Systems focused on fab automation and facility engineering, United Integrated Services handled specialty gas and chemical supply systems, and L&K Engineering took charge of cleanroom and electromechanical turnkey work.
First fab targets mature and specialty process demand
According to Bloomberg, VSMC’s first fab is designed for specialty process technologies ranging from 40 nm to 130 nm. The product mix covers mixed-signal, power management, and embedded flash applications used in automotive and industrial markets.
NXP CEO Rafael Sotomayor said the project is the company’s largest investment since its 2015 acquisition of Freescale. He said the aim is to support hardware demand tied to "Physical AI" in edge applications such as automotive and infrastructure. The fab is expected to create about 1,600 jobs locally.
VIS confirms it is evaluating a second fab in Singapore
As artificial intelligence applications and data center expansion continue to tighten semiconductor supply, VIS Chairman Fang Leuh said chip shortages are expected to continue for some time. He also said that, based on current demand, the company should have planned to build two fabs at the same time from the start.
With market expansion and long-term customer demand in view, the VSMC team has started evaluating the feasibility of building a second wafer fab in Singapore. The review is tied to regionalized supply chain planning and order growth.
Process node and budget for the second fab are still under review
On the possible second plant, Fang said its process technology node could be more advanced than that of the first fab. Even so, management has not provided a specific figure for total capital expenditure or construction budget.
Fang said costs can vary significantly depending on process generation and equipment configuration. A final budget will depend on the eventual process node decision and customer product specifications. At this stage, the project remains in preliminary evaluation.