en.Wedoany.com Reported - On May 5, 2026, Taiwan, China-based specialty IC foundry Vanguard International Semiconductor (VIS) disclosed during its Q1 2026 earnings conference call that it has initiated preliminary discussions and evaluations with its joint venture partner, Netherlands-based NXP Semiconductors, regarding the Phase II capacity expansion plan for the Singapore VSMC 12-inch wafer fab. VIS's previous official roadmap explicitly outlined the long-term goal that "after the successful mass production of the first fab, both partners will consider building a second fab." This evaluation marks the first substantive signal of progress in this planned direction.
Despite a downward adjustment in capacity and investment scale, the initial phase capacity has been fully booked. Numerous customers continue to express strong demand for VSMC capacity and are actively monitoring the timeline for the next phase of expansion. The fab management expects to initiate sampling around June to July 2026, with mass production commencing in the first quarter of 2027.
From a financial perspective, the expansion discussions are supported by performance. VIS's consolidated revenue for the first quarter was approximately NT$12.532 billion, representing a year-over-year growth of about 4.9%, marking the first instance of positive year-over-year revenue growth in nearly three quarters. Looking ahead to the second quarter, benefiting from customer inventory replenishment and seasonal stocking demand, wafer shipments are estimated to increase by 11% to 13% quarter-over-quarter. Capacity utilization is expected to further improve from approximately 80% in the first quarter to between 85% and 90%, with gross margin also having room for upward revision. VIS maintains its full-year capital expenditure at approximately NT$60 to 70 billion, of which about 85% will continue to be invested in the construction and equipment procurement for VSMC.
VIS has signed technology licensing and technology transfer agreements with TSMC, and VSMC will utilize TSMC-licensed technologies ranging from 130nm to 40nm. Notably, VSMC's newly added silicon interposer foundry business is a key component for 2.5D/3D advanced packaging (such as CoWoS technology), used to address the interconnect bandwidth bottleneck between GPUs and HBM. This strategic move signifies VIS's official entry into the AI and HPC advanced packaging supply chain through its Singapore 12-inch fab platform.
Corresponding to the timeline for critical equipment move-in, foreign companies such as ASML, Applied Materials, and KLA, as well as Taiwan, China-based equipment and facility suppliers including Razer, Juxian, and Hantang, have been confirmed as part of the supply chain.
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