VIS Opens Singapore 12-Inch Fab, Capacity Fully Committed

According to an announcement on September 28, VisionPower Semiconductor Manufacturing Company (VSMC), a joint venture between Vanguard International Semiconductor (VIS) and NXP Semiconductors, officially opened Singapore’s first 12-inch wafer fabrication plant.

VSMC is owned 60% by VIS and 40% by NXP, with a total investment of approximately $7.8 billion. The facility focuses on automotive, industrial, consumer electronics, and mobile device markets, producing mixed-signal, power management, and analog chips while also developing products such as silicon interposers.

Construction of VSMC began in December 2024, and the facility was completed in about 22 months. Around 200 pieces of equipment have entered the trial operation stage. In June, the fab produced its first batch of 40nm chips, achieving a test yield of more than 99%. The project is currently ahead of its original schedule and is expected to enter mass production in the first quarter of 2027.

VIS Chairman Fang Lue previously said that the entire first-phase capacity of VSMC has already been committed by customers. Agreements have also been reached for additional interposer demand from some customers. This provides the new fab with a clear order base at the initial production stage, which could support faster capacity utilization and help the facility reach break-even sooner. The overall capacity build-out, originally planned for completion in 2029, could potentially be brought forward to 2028.

VSMC expects its fully loaded monthly capacity to reach approximately 44,000 to 45,000 12-inch wafers by 2029. Although this is below the original target of 55,000 wafers per month, the company expects to optimize its product mix and value per wafer. To address potential future demand, VIS has also begun discussions on plans for a second 12-inch wafer fabrication plant.