Semiconductor firm VSMC opens first plant in Singapore, to create 1,600 jobs

Taiwan’s Vanguard International Semiconductor (VIS) and Dutch chipmaker NXP Semiconductors have joined forces to open the first VisionPower Semiconductor Manufacturing Company (VSMC) microchip fabrication plant in Singapore. The $7.8 billion (S$10.5 billion) facility, located in Tampines Wafer Park, is expected to generate 1,600 jobs and produce 44,000 12-inch wafers per month at full capacity by 2029.

A wafer is a thin, circular slice of semiconductor material, such as crystalline silicon, from which integrated circuits, or "chips," are manufactured. VSMC will produce chips for mixed-signal, power management, analogue, and interposer applications, catering to high-performance computing, mobile, automotive, and industrial end uses.

Interposers, which connect powerful processors to high-bandwidth memory stacks in data centers to handle AI workloads, are among VSMC’s target applications. At the opening ceremony on September 28, NXP CEO Rafael Sotomayor stated that VSMC will deliver innovative technologies enabling the next generation of smart devices and physical AI systems – integrating AI with hardware capable of perceiving, reasoning, and acting in the real world.

The fully automated smart manufacturing model, which incorporates AI and digital management technologies, aims to enhance operational efficiency and customer service quality. VSMC has partnership agreements with leading Singaporean universities for internships and professional training programs, helping build a steady pipeline of semiconductor talent.

Singapore's Minister for Trade and Industry (Energy and Industry), Tan See Leng, highlighted that these collaborations will provide students with industry exposure and showcase the diverse career opportunities available in the sector. Under Singapore's Workforce Development Agency and the Ministry of Manpower's graduate industry traineeships program, known as GRIT, VSMC will create pathways for fresh graduates and mid-career workers.

This strategic move will ensure that Singapore's semiconductor industry growth translates into good jobs and meaningful career prospects. VIS, which already owns a wafer plant in Singapore, is about 19% owned by Taiwan Semiconductor Manufacturing Company (TSMC), the world's top chipmaker. NXP, a leading producer of automotive, industrial, IoT, mobile, and communications infrastructure, operates in 30 countries, including Singapore, where it holds a significant stake in chipmaker SSMC, in partnership with TSMC.

VSMC chairman Leuh Fang hinted at the possibility of a second plant in Singapore to meet the growing demand for chips, given the AI boom. The chip supply shortage is expected to persist, according to Fang. While advanced logic chips produced by chipmakers like TSMC and Samsung often hog headlines, specialty semiconductors, like those manufactured by VIS and its parent companies, are equally crucial for AI applications.

These specialty semiconductors are tailored to manage power, sense voltage, current or temperature, and control systems in consumer devices, industrial equipment, and data centers. Tan See Leng emphasized Singapore's strong capabilities in specialty semiconductors over decades and expressed confidence that VSMC will bolster the Republic's role as a trusted node in the global chip supply chain.

VSMC is expected to significantly contribute to Singapore's semiconductor manufacturing capabilities and reinforce the country's position as a reliable link in the global chip supply chain. The country's semiconductor industry accounts for one in 10 chips and a fifth of global semiconductor equipment produced annually. Singapore's semiconductor industry contributes close to 6% of the country's GDP and employs more than 35,000 people.