VSMC opens a massive $7.8 billion semiconductor fab in Singapore to boost AI chip production.

VisionPower Semiconductor Manufacturing Company, a joint venture between Vanguard International Semiconductor and NXP Semiconductors, has opened its first 300-millimeter wafer fab in Tampines, Singapore. After completing construction and processing a sample lot with yields above 99%, the facility has entered risk production, with volume manufacturing planned for the first quarter of 2027. It will make specialty chips using 130- to 40-nanometer processes for power management, mixed-signal, analog and interposer applications serving automotive, industrial, mobile, consumer and high-performance computing markets. The partners see rising demand for these chips as artificial intelligence expands into vehicles, robots, factories and other physical systems, and say the fab will bolster supply-chain resilience. At full capacity, expected by 2029, the plant is projected to produce about 44,000 wafers monthly and support roughly 1,600 jobs.
NXP president and CEO Rafael Sotomayor said that “engineering trust into edge devices” is essential for society to allow physical AI to scale in the real world, and that facilities such as VSMC’s fab are needed to expand chipmaking capacity for those systems.
The fab uses a fully automated smart-manufacturing platform that combines artificial intelligence and digital systems to improve production efficiency and customer service quality.
The Business Times described the Singapore fab as a US$7.8 billion project.
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