VIS Invests in Singapore 12-Inch Facility, No U.S. Expansion Plans

On February 25th, at a press conference, Fang Lue, Chairman and Strategy Director of Vanguard International Semiconductor Corporation (VIS), discussed the company's outlook for the semiconductor industry in 2025. He highlighted the impact of new policies and measures from the U.S. government under the Trump administration, noting that these could influence inflation and economic conditions. However, he also pointed out that inventory levels have begun to recover healthily. While the automotive sector continues its recovery, it has shown ongoing improvements. Excluding the effects of tariffs and other factors, VIS expects a moderate growth outlook for 2025.

Fang emphasized that the company's investment strategy for its 12-inch wafer fabrication remains unchanged. VIS continues to focus on R&D, investing in competitive technologies, and does not plan to establish new manufacturing plants in the United States as part of its capacity expansion efforts.

Regarding the increasing interest from integrated device manufacturers (IDMs), Fang responded by stating that the company's 12-inch production progress aligns with customer needs and commitments. The company's new 12-inch facility in Singapore, Vanguard Semiconductor Manufacturing Corporation (VSMC), is progressing on schedule, even slightly ahead of target. The facility is expected to begin partial production by the second half of 2026, with full-scale production slated for 2027.

VIS also confirmed that in 2025, it will continue to provide stable and long-term capacity for mature process technologies. The company's capital expenditures, calculated on a cash basis, are projected to range between NT$60 billion to NT$70 billion, with over 90% of this allocated to the VSMC facility in Singapore. The remaining funds will be used for other facilities.

To support the VSMC's 12-inch manufacturing expansion, VIS has revised its capital expenditure estimate to NT$6.74 billion, up from the previous NT$5 billion forecast. This increase reflects additional expenses related to VSMC's technology licensing.

For the overall capital expenditures, VIS expects to spend NT$15.94 billion, which is lower than the initial estimate of NT$27-28 billion, due to more favorable procurement conditions. About 80% of this budget will be directed toward investments in the VSMC facility, with the remaining portion allocated for routine maintenance of other manufacturing plants.