Vanguard weighs second Singapore fab as VSMC’s first reaches capacity

  • Vanguard International Semiconductor is evaluating a second Singapore wafer fab after VSMC’s first facility sold out its initial capacity.
  • The Tampines fab is designed for approximately 44,000 wafers per month and is expected to reach full utilization in 2028.
  • VSMC achieved yields above 99% on its first sample lot and targets volume production in the first quarter of 2027.

Vanguard International Semiconductor is evaluating a second Singapore wafer fabrication facility after capacity at its first plant, operated through VisionPower Semiconductor Manufacturing Company with NXP Semiconductors, was fully booked ahead of schedule. VSMC opened the first 12-inch (300mm) fab in Tampines on September 28, 2026, following 22 months of construction after a December 2024 groundbreaking. The fab has entered risk production after its first sample lot achieved yields above 99%, with volume production targeted for the first quarter of 2027. Its initial capacity of approximately 44,000 wafers per month is now expected to be fully utilized in 2028, earlier than the previous projection of full capacity by 2029. The facility cost approximately $6.7 billion, below the original $7.8 billion estimate, after its scope shifted to include TSMC-licensed silicon interposer production using 30-40nm technology. VSMC will produce specialty chips from 130nm to 40nm for high-performance computing, mobile, automotive, industrial and consumer applications, while the project has created around 1,600 jobs.

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