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

SINGAPORE: Backed by semiconductor firms from Taiwan and the Netherlands, VisionPower Semiconductor Manufacturing Company (VSMC) opened its first S$8.5 billion (US$6.7 billion) wafer fabrication plant in Singapore on Monday (Sep 28), which is expected to create 1,600 new jobs.Set to begin volume production in the first quarter of 2027, the Tampines facility will be able to produce 44,000 silicon wafers per month when it reaches full capacity by 2029.Instead of the semiconductor chips used in artificial intelligence typically produced using the two-nanometre or smaller process, VSMC's Singapore plant is set to produce the 40- to 130-nanometre chips that are still in high demand, such as for mixed-signal, power management and interposer applications.These will serve the high-performance computing, mobile, automotive, industrial and consumer markets, the company said in a press release. VSMC is a joint venture between Taiwan’s TSMC-backed Vanguard International Semiconductor (VIS) and the Netherlands' NXP Semiconductors.The VSMC facility, which has taken 22 months to build, will be fabricating 300mm wafers. A wafer – a thin, circular disk made out of silicon – is the foundation needed to build microchips, semiconductors and integrated circuits. A semiconductor wafer on display at VisionPower Semiconductor Manufacturing Company on Sep 28, 2026. (Photo: CNA/Lim Li Ting) Speaking at the opening ceremony, Minister for Trade and Industry (Energy and Industry) Dr Tan See Leng said that while much of the attention today is on the most advanced logic chips that power artificial intelligence, specialty semiconductors are just as essential.Noting that the semiconductor industry is set to double to US$1.6 trillion by 2030, he added that demand for specialty chips is growing with trends like electrification, connected devices and industrial automation.The plant will contribute significantly to Singapore’s semiconductor manufacturing capabilities and reinforce its role as a trusted node in the global semiconductor supply chain, said Dr Tan.Of the 1,600 new jobs, 75 per cent will be for professional, managerial, executive and technician roles, said Dr Tan.These include engineers, chemists and data scientists who will operate advanced manufacturing equipment, develop and fabricate wafers and optimise the manufacturing process, he added.“These roles will give Singaporeans opportunities to build deep skills and meaningful careers in an important, growing industry.”The semiconductor industry presently contributes close to 6 per cent of Singapore’s economy and employs more than 35,000 people, according to a factsheet from the Economic Development Board.Singapore accounts for about one in every 10 chips made globally. The country also produces one-fifth of global semiconductor equipment annually. A model of VisionPower Semiconductor Manufacturing Company on Sep 28, 2026. (Photo: CNA/Lim Li Ting) Chairman of VSMC and VIS Leuh Fang stressed the importance of reliable manufacturing and resilient supply chains as demand for semiconductors continues to grow.For VSMC, Singapore is a long-term strategic partner, and the investment reflects its confidence in the country’s role in the global semiconductor industry.President and CEO of NXP Semiconductors Rafael Sotomayor noted that the world is entering an era where artificial intelligence is moving beyond the cloud and into the physical world, with physical AI applications to vehicles, robots and factories.“Semiconductors are at the heart of this transformation, providing the foundation for trusted physical AI and facilities like VSMC are essential to enable it,” he added.