On Dec 4, VisionPower Semiconductor Manufacturing Company (VSMC) began construction on its S$10.5 billion (US$7.8 billion) semiconductor plant at Tampines Wafer Park. A joint venture between Taiwan’s Vanguard International Semiconductor (VIS) and the Netherlands’ NXP Semiconductors, the facility represents a significant addition to Singapore’s semiconductor ecosystem.
Key Highlights
- Production and Capacity
- Start of production: 2027.
- Full capacity by 2029: 55,000 wafers/month.
- Produces 40nm to 130nm chips, focusing on mixed-signal, power management, and analog chips for industries like automotive and consumer electronics.
- Economic Impact
- 1,500 jobs created, with a focus on professional, technical, and managerial roles.
- Roles will include chemists, data scientists, and AI specialists to support the fully automated plant.
- Boosts Singapore’s position as a global supplier of legacy chips (larger than 28nm).
- Strategic Importance
- Reinforces Singapore’s role in the global semiconductor value chain, with the sector accounting for 8% of GDP and 10% of the manufacturing workforce.
- Addresses global chip demand, particularly for automotive and industrial applications.
- Technology and Sustainability
- Incorporates a fully automated production model with AI for quality management and material handling.
- Designed with green manufacturing principles to support sustainability goals.
- Future Expansion Plans
- A second-phase expansion is under consideration, potentially adding another plant by 2030.
Industry and Government Support
Minister for Manpower Tan See Leng:
- Highlighted Singapore’s competitive edge in specialty chip production.
- Stressed the facility’s role in enhancing partnerships with local suppliers and creating opportunities for new vendors.
VSMC and Partner Remarks:
- Leuh Fang, VSMC Chairman: Emphasized the commitment to sustainable growth and innovation.
- Andy Micallef, NXP EVP: Confirmed active discussions with global customers eager to secure chip supply from the new plant.
Singapore Economic Development Board (EDB):
- Views the investment as a testament to Singapore’s attractiveness for advanced manufacturing.
- Committed to enhancing talent development and decarbonization in the semiconductor ecosystem.
Global Context and Industry Trends
- The new plant comes amid rising US-China tensions over technology, increasing the importance of diversifying global semiconductor production.
- Singapore contributes 10% of the global semiconductor supply and produces 20% of global semiconductor equipment annually.
- The NXP-VIS plant will focus on mature chips, critical for power control in applications like electric vehicles and telecommunications.
Looking Ahead
VSMC’s new facility will strengthen Singapore’s semiconductor industry, offering economic benefits and bolstering its position as a trusted, stable hub for global technology manufacturing. With potential plans for expansion, Singapore is poised to play a key role in addressing the evolving demands of the semiconductor market.
