VIS weighs second Singapore fab as AI demand books out its first plant
In brief
- VIS is evaluating a second Singapore wafer fab through VSMC, its NXP joint venture.
- No timeline, investment figure or capacity target has been disclosed for the second plant.
- VSMC's first 300mm fab in Tampines opened September 28; production is expected in Q1 2027.
- The first fab's initial capacity was fully booked before production began, Crypto Briefing reported.
What's on the table (and what isn't)
The second plant is still at the evaluation stage. That's the key caveat.
According to Crypto Briefing's report, VIS hasn't disclosed a timeline, an investment figure or a capacity target for it. So this isn't a decision or a commitment (it's a chipmaker weighing its options while its first site fills up before opening). Fang's remarks about demand outrunning capacity are what put a second plant on the table in the first place.
VSMC is split 60% to VIS and 40% to NXP. It focuses on mature-node processes between 40nm and 130nm.
The Tampines fab
VSMC inaugurated its first 300mm fab in Tampines on September 28, 2026, and production is expected to begin in Q1 2027. Crypto Briefing put the estimated investment in the first site at approximately US$6.7 billion to US$7.8 billion. The plan calls for the fab to reach 44,000 wafers per month by 2029, and it's expected to create about 1,600 jobs.
Its initial capacity was fully booked before production began.
NXP CEO Rafael Sotomayor said the facility would significantly contribute to enabling "physical AI" in sectors including automotive and industrial applications. That's NXP's framing. It points the fab at chips that go into cars and factory equipment rather than the headline AI accelerators.
Why mature nodes matter here
Crypto Briefing tied the expansion directly to AI demand, specifically for the specialty chips that AI infrastructure depends on:
The reason is AI demand, specifically for the less glamorous specialty chips that AI infrastructure quietly depends on.
The outlet's read on the market is that buyers of mature-node chips may face a more competitive supply environment if the first VSMC fab is fully booked before production starts in Q1 2027. That's Crypto Briefing's analysis, not a forecast from VIS or NXP.
Will a second plant ease that pressure? VIS hasn't said, and without a cost, a capacity number or a start date, there's nothing yet to measure it against.
Frequently asked questions
Has VIS committed to building a second Singapore plant?
No. Crypto Briefing reported the second plant is still at the evaluation stage. No timeline, investment figure or capacity target has been disclosed. VIS Chairman Leuh Fang said customer demand had stretched the first facility's capacity beyond its limits, which led to the evaluation.
What is VSMC and what does it make?
VSMC is a joint venture between VIS and NXP Semiconductors, split 60% to VIS and 40% to NXP. It focuses on mature-node manufacturing processes between 40nm and 130nm. Its first 300mm fab in Tampines, Singapore, opened on September 28, 2026.
When will the Tampines fab start production and how large will it get?
Production at the Tampines fab is expected to begin in Q1 2027, according to Crypto Briefing. The plan calls for it to reach 44,000 wafers per month by 2029. Investment was estimated at approximately US$6.7 billion to US$7.8 billion, with about 1,600 jobs expected.
