Semiconductor firm VSMC opens first plant in Singapore, will create 1,600 jobs by 2029

SINGAPORE – Taiwan’s Vanguard International Semiconductor (VIS) and Dutch chipmaker NXP Semiconductors have opened their first VisionPower Semiconductor Manufacturing Company (VSMC) microchip fabrication plant here.

The US$7.8 billion (S$10.5 billion) fab in Tampines Wafer Fab Park, which has already produced its first sample lot, will create 1,600 jobs and produce 44,000 12-inch wafers a month at full capacity by 2029.

A wafer is a thin, round slice of semiconductor material, such as crystalline silicon, from which integrated circuits, also called chips, are fabricated.

VSMC will produce chips for mixed-signal, power management, analogue and interposer applications for high-performance computing, mobile, automotive and industrial end uses.

Interposers connect powerful processors to high-bandwidth memory stacks in data centres to handle artificial intelligence workloads, among other applications.

Speaking at the opening ceremony on Sept 28, NXP’s chief executive officer Rafael Sotomayor said VSMC will deliver innovative technologies that enable the next generation of smart devices and physical AI systems – which integrate AI with hardware that can perceive, reason and act in real-world environments.

The fab uses a fully automated smart manufacturing model, integrating AI and digital management technologies to improve operational efficiency and customer service quality.

VSMC said it has pacts with leading universities in Singapore for internships and professional training programmes to help build a sustainable pipeline of semiconductor talent.

Speaking at the event, Minister for Trade and Industry (Energy and Industry) Tan See Leng said these partnerships will also provide students with industry exposure and help them better understand the range of careers available.

The company is creating pathways for mid-career workers through the Skills and Workforce Development Agency’s Career Conversion Programmes, and for fresh graduates through the Ministry of Manpower’s Graduate Industry Traineeships Programme.

“Together, these efforts will help ensure that the growth of Singapore’s semiconductor industry translates into good jobs and meaningful career opportunities,” Tan said.

VIS, which already has a wafer plant in Singapore, is about 19% owned by the world’s top chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC).

NXP is one of the world’s top producers of automotive, industrial, internet-of-things, mobile and communications infrastructure.

It has operations in 30 countries, including Singapore, where it is also a major stakeholder in chipmaker SSMC in partnership with TSMC.

VSMC chairman Leuh Fang told the media that the company is also considering a second plant in Singapore to meet growing chip demand. The chip supply shortage amid the AI boom is likely to persist, he said.

Most headlines about AI-powering hardware focus on the most advanced logic chips produced by chipmakers such as TSMC and Samsung.

But specialty semiconductors, such as those produced by VIS and its parent companies, are just as essential for AI applications, as they are optimised to manage power, sense voltage, current or temperature, and control systems in consumer devices, industrial equipment and data centres.

Tan said: “Singapore is well positioned to capture these opportunities. We have developed strong capabilities in specialty semiconductors over decades, and VSMC will build on this foundation.”

He said VSMC will contribute significantly to Singapore’s semiconductor manufacturing capabilities and reinforce the Republic’s role as a trusted node in the global chip supply chain, adding that the company’s impact will also extend across the wider chip ecosystem, creating opportunities for local suppliers across specialty chemicals and gases, equipment services, facilities and logistics.

Singapore is a key node in the global semiconductor supply chain, accounting for one in 10 chips and one-fifth of global semiconductor equipment produced annually.

According to the Economic Development Board, Singapore’s semiconductor industry contributes close to 6% of the country’s gross domestic product and employs more than 35,000 people.