VIS Considers Second Singapore Semiconductor Fab as AI Infrastructure Demand Grows
With initial capacity at its new S$8.5 billion VSMC facility already booked, VIS is assessing further Singapore expansion to meet demand for specialty chips used across computing, automotive and industrial markets.
Vanguard International Semiconductor (VIS) is considering a second semiconductor manufacturing facility in Singapore as strong demand linked to AI infrastructure has already filled the initial capacity of its newly opened plant.
The company’s Singapore operation, VisionPower Semiconductor Manufacturing Company (VSMC), is a joint venture between VIS and NXP Semiconductors. Its first 300mm wafer fabrication facility in Tampines opened in late September following an investment of around S$8.5 billion (US$6.7 billion). Volume production is expected to begin in the first quarter of 2027, with capacity planned to reach 44,000 wafers per month by 2029.
Despite production yet to begin, initial capacity at the facility has already been booked, prompting VIS to assess the potential for further expansion in Singapore. The company has not disclosed an investment value, production target or timetable for a possible second plant.
VSMC will manufacture chips using 40nm to 130nm process technologies, targeting mixed-signal, power management and interposer applications across high-performance computing, automotive, industrial, mobile and consumer markets. While these are not the leading-edge processors typically associated with AI accelerators, demand for such specialised chips is increasing as data centres, connected systems and industrial applications expand.
The first facility is expected to create around 1,600 jobs and further strengthen Singapore’s position in the global semiconductor supply chain. A second fab would deepen VIS and NXP’s manufacturing presence in the country while adding capacity for specialty semiconductors supporting the continued expansion of AI infrastructure and advanced computing.
