TSMC Affiliate VIS Is Considering Establishing a Cutting-Edge Chip Plant in Singapore

     Vanguard International Semiconductor (VIS), a subsidiary of Taiwan Semiconductor Manufacturing Co. (TSMC), is reportedly nearing a decision to build its most advanced semiconductor manufacturing facility in Singapore, according to sources with knowledge of the situation. VIS, a specialty contract chipmaker in which TSMC possesses a 28.3% stake, intends to construct its first 12-inch chip plant in order to meet the demand for automotive-related chips. Increasing demand for mature semiconductor supplies for the electrification of automobiles and other electronic devices, as well as the need to maintain production capacity in multiple locations to accommodate geopolitical tensions and customer demands, motivate the transition.

     Sources estimate that the investment in Singapore will be VIS’s most substantial in recent years, amounting to a minimum of $2 billion. It is anticipated that the organization will incur capital expenditures of NT$10 billion ($309 million) this year, as opposed to NT$19.4 billion in 2022. Formerly operating solely 8-inch chip facilities that generate mature chips, VIS’s new 12-inch plant will produce automotive and industrial chips that are mature and long-lasting.

     The proposed facility will be situated in close proximity to the 8-inch chip plant that VIS acquired from GlobalFoundries in Tampines, Singapore, in 2019. The location is in close proximity to the plant jointly operated by NXP and TSMC, Systems on Silicon Manufacturing Co. (SSMC). Advantages in supply chain collaboration and proximity to other semiconductor industry participants in the region are provided by this strategic location.

     The second-largest contract semiconductor manufacturer in Taiwan, United Microelectronics Corp. (UMC), is also constructing a $5 billion facility nearby. Additionally, Applied Materials and GlobalFoundries are pursuing expansion strategies in Singapore.