Vanguard International Semiconductor (VIS) is evaluating the construction of a second wafer fabrication plant in Singapore. The company is considering this expansion through VSMC, its joint venture with NXP Semiconductors, following the full booking of initial capacity at their first facility in Tampines before production has even commenced.
The first VSMC plant, which held its inauguration on September 28, 2026, is scheduled to begin production in the first quarter of 2027. The facility represents an investment of approximately $6.7 billion to $7.8 billion and is expected to create 1,600 jobs. By 2029, the plant aims to reach a production capacity of 44,000 wafers per month.
The joint venture is structured with VIS holding a 60% stake and NXP holding 40%. The facility focuses on mature manufacturing processes ranging from 40nm to 130nm. These chips are intended to support physical AI applications, including automotive and industrial systems, rather than the advanced nodes typically used for flagship AI accelerators.
While the first plant is already fully booked, the plans for a second site remain in the evaluation stage. There are currently no confirmed timelines, investment figures, or capacity targets for the potential second facility. The company's immediate focus remains on executing the production ramp-up of the Tampines site according to the established 2027 and 2029 milestones.
