Vanguard and TSMC Plans $7.8 Billion to Build Joint Chip Plant
Vanguard International Semiconductor and NXP Semiconductors announced a joint venture to build a $7.8 billion semiconductor plant in Singapore.
Aimed at diversifying manufacturing capabilities amid geopolitical tensions and targeting automotive, industrial, consumer, and mobile markets.
The new facility will be Vanguard's first 12-inch wafer fabrication plant, expanding beyond their traditional 8-inch fabs.
Construction is set to begin in the second half of 2024 with production expected to start in 2027.
The initiative is part of a broader move by Taiwanese semiconductor firms to reduce risk amidst U.S.-China tech rivalries by expanding their manufacturing bases globally.
Follows similar strategies by other Taiwanese companies like UMC’s recent announcement of a $5 billion microchip factory in Singapore.
Both firms will also invest an additional $1.9 billion for the plant’s long-term capacity, supplemented by third-party loans.
The semiconductor industry is expected to grow to over $1 trillion by the end of the decade.
TSMC, as a global leader, is actively investing in new plants, including significant facilities in Japan and the U.S., with up to $6.6 billion in support from the U.S. government for its Arizona plants.
The Singapore plant is poised to be a critical part of the global semiconductor supply chain, enhancing production capacity and mitigating geopolitical risks.
This venture highlights the ongoing strategic shifts and expansions within the semiconductor industry, aimed at maintaining global supremacy and reliability.