Semiconductor firm VSMC opens first S$8.5 billion plant in Singapore, expected to create 1,600 jobs

On September 28, VisionPower Semiconductor Manufacturing Company (VSMC), a joint venture between Taiwan’s TSMC-backed Vanguard International Semiconductor and the Netherlands’ NXP Semiconductors, inaugurated its first S$8.5 billion wafer fabrication plant in Singapore. The plant is expected to produce 44,000 silicon wafers per month by 2029, creating 1,600 new jobs.

The Tampines facility, which began volume production in Q1 2027, will manufacture 40- to 130-nanometre chips, a critical component for mixed-signal, power management, and interposer applications used in high-performance computing, mobile, automotive, industrial, and consumer markets. These applications are still in high demand despite the growing emphasis on artificial intelligence (AI) chips produced using two-nanometre or smaller processes.

Minister for Trade and Industry (Energy and Industry) Dr Tan See Leng highlighted the significance of specialty semiconductors, noting that the semiconductor industry is poised to double to US$1.6 trillion by 2030. He emphasized that demand for specialty chips is growing due to trends like electrification, connected devices, and industrial automation.

Dr Tan also emphasized that the new facility will bolster Singapore's semiconductor manufacturing capabilities and solidify its position as a trusted node in the global semiconductor supply chain.

Of the 1,600 new jobs created by the plant, 75% will be professional, managerial, executive, and technician roles, including engineers, chemists, and data scientists. These roles will provide Singaporeans the opportunity to develop deep skills and pursue meaningful careers in a rapidly growing industry. The semiconductor industry presently contributes close to 6% of Singapore's economy and employs over 35,000 people, making Singapore a major player in global semiconductor production, accounting for roughly one in every ten chips made worldwide.