Vanguard and NXP Consider Building a Second 12-Inch Chip Fab in Singapore
en.Wedoany.com Reported - VisionPower Semiconductor Manufacturing Company (VSMC), a joint venture between Vanguard and NXP Semiconductors (NXP), has officially opened its first 12-inch wafer fab in Singapore. Fang Lue, Chairman of both Vanguard and VSMC, stated that amid continuously growing customer demand, the company has begun discussions and planning for a second Singapore wafer fab. The new fab is expected to adopt more advanced process technology than the first, though the specific technology roadmap, investment scale, and construction timeline have not yet been determined.
VSMC is 60% owned by Vanguard and 40% by NXP. Its first fab is located in Singapore and uses a 300mm wafer production platform, primarily covering 30–40nm process nodes and producing mixed-signal, power management, analog chips, microcontrollers, and silicon interposers, serving markets including automotive, industrial, consumer electronics, mobile devices, and high-performance computing. The relevant technology licensing and transfer are supported by TSMC.
Construction of the first VSMC fab began in late 2024, with total project investment estimated at approximately US$7.8 billion. The fab produced its first batch of 40nm wafers in June 2026, with a yield exceeding 99%. It is scheduled to enter official mass production in the first quarter of 2027 and reach full capacity of approximately 44,000 12-inch wafers per month by 2029. The planned capacity of the first fab has been substantially pre-sold, providing a demand basis for further evaluation of a second fab.
In an interview, Fang Lue said the second fab is still in the preliminary discussion stage, and the company has not yet decided which process technology to adopt, making it currently impossible to estimate the investment budget. The equipment, cleanroom, and process system investments required for different technology nodes vary considerably, and the future capital expenditure for the second fab will depend on the final technology positioning and customer demand. At this stage, the company is inclined to have the second fab undertake more advanced manufacturing capabilities to expand VSMC's coverage in the specialty process and advanced mature node markets.
Singapore has already established a relatively complete industrial foundation in wafer manufacturing, semiconductor equipment, and advanced packaging. In addition to VSMC, UMC is also advancing 12-inch wafer capacity expansion locally, with capacity at its P3 site continuing to increase and cleanroom construction and equipment procurement already underway at its P4 site. If VSMC further proceeds with a second wafer fab, it will continue to expand the manufacturing footprint of Vanguard and NXP in Singapore.
