Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) smaller affiliate Vanguard International Semiconductor Corp (VIS, 世界先進) might accelerate the chip production schedule at its new US$7.8 billion joint venture in Singapore, on greater customer demand for hedging against geopolitical risks.
VIS might be able to push production at the new plant, which makes mature chips, to as early as late next year, versus the originally announced schedule of the first half of 2027, VIS chairman Fang Leuh (方略) told reporters at a company event on Saturday in Taoyuan.
VIS broke ground for the semiconductor facility in the fourth quarter of last year.
Photo: Grace Hung, Taipei Times
“Over the past few months, many customers have shown greater interest in our new 300mm Singapore plant due to geopolitical uncertainties,” Fang said.
VIS’s new plant is a joint venture with Dutch firm NXP Semiconductors NV. While the Taiwanese company does not make the most cutting-edge artificial intelligence chips, it is a key supplier in making chips for automotive and industrial use.
Both TSMC and VIS are adding capacity outside of their home turf, partly due to growing concerns from global chip users over China’s persistent threats to unite with self-governing, democratic Taiwan, by force if necessary.
However, overseas expansion has not always been smooth. TSMC recently said it is pushing back the construction of its second fab in Japan due to worsening traffic conditions in the area.
An NXP executive said in December last year that the two companies are working on a phase-two expansion of the facility, although the plan still needs formal approval.
VIS is currently focusing on getting the first plant ready, and it is not considering a second phase yet, Fang said.
While US President Donald Trump’s trade disputes and tariffs have created additional challenges, Fang said he still expects VIS to see business grow mildly in US dollar terms year-over-year in the second half of the year.
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