TSMC's affiliated company plans to build a second chip factory in Singapore
The Block
1h ago
Ai Focus
To meet the growing demand, VSMC, a joint venture between TSMC's related company World Advanced and NXP Semiconductors, is considering building a second chip factory in Singapore. Chairman Fang Lue stated that the new factory may produce more advanced chips than the first one, but the technical route has not yet been decided, and it is too early to discuss the budget as well.
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To meet the growing demand, VisionPower Sem, a joint venture between TSMC's affiliated company World Advanced and the Dutch company NXP Semiconductors, which issues the nductor Manufacturing Co token (referred to as VSMC), is considering building a second chip factory in Singapore.

In an interview, Fang Lue, the world's advanced and VSMC Chairman, stated that the new factory can produce more advanced chips than the first factory in Singapore.

Despite major manufacturers such as TSMC expanding their production capacity, the demand for AI services and the data centers required for them continues to grow, leading to a global semiconductor supply shortage. This trend has prompted Taiwanese manufacturers to look overseas to establish new production bases, with places like Singapore attracting global investment.

Strategist said, 'The supply shortage will continue for some time. We should have built two factories here at once in the first place.'

VSMC held the inauguration ceremony for its first chip factory in Singapore on Monday. Construction of the factory began at the end of 2024, and the company expects to invest $7.8 billion. The strategy team is reluctant to estimate the potential cost of a second factory.

He said, "It's still too early to discuss the budget now, as we haven't decided on which technology to use yet. Different technologies will result in significantly different total investment amounts."

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