TSMC $5B and Vanguard $2.4B Investments Approved!

On July 29, Taiwan's Ministry of Economic Affairs Investment Commission approved TSMC's $5 billion investment in TSMC Global Ltd. in the British Virgin Islands, alongside Vanguard International Semiconductor Corporation's (VIS) $2.4 billion investment in Singapore's VisionPower Semiconductor (VSMC). This joint venture with NXP Semiconductors aims to establish a 12-inch wafer fabrication plant.

TSMC's $5 billion capital infusion into TSMC Global Ltd. is primarily directed towards general investment activities, potentially for currency hedging purposes.

Vanguard's $2.4 billion investment, initially announced on June 5, formalized a joint venture with NXP, creating VSMC to construct a 12-inch wafer plant in Singapore. The total investment in this venture amounts to $7.8 billion, with Vanguard contributing $2.4 billion for a 60% stake and NXP investing $1.6 billion for a 40% stake.

The new wafer plant will utilize 40-130nm process technology, producing mixed-signal, power management, and analog products. These are essential for the automotive, industrial, consumer electronics, and mobile device markets. TSMC will provide technical support and technology transfer for this initiative.

Taiwanese economic authorities highlighted that this investment leverages mature technology, which will aid Vanguard and its partners in expanding market share. This strategic move is set to bolster Taiwan's leadership in the semiconductor industry and enhance its geopolitical significance, thereby improving the international competitiveness of Taiwan's semiconductor sector.

Construction of Vanguard's Singapore-based 12-inch plant is scheduled to commence in the latter half of this year, with trial production anticipated by 2027 and full-scale profitability by 2029. With TSMC's technological backing, the long-term outlook for this plant is highly favorable.