Due to international situations and uncontrollable factors, the global semiconductor supply chain is shifting, with Southeast Asia, possessing labor and development advantages, becoming the top choice for global companies. Malaysia, India, and Singapore are among the regions targeted by many manufacturers, who are rapidly expanding their presence there.
Latest news from yesterday: Vanguard International Semiconductor (VIS) and NXP Semiconductors announced the construction of their first 12-inch semiconductor wafer fabrication plant in Singapore.
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VIS and NXP are targeting the 12-inch wafer market.
On June 5, wafer foundry VIS and NXP Semiconductors announced plans to establish a joint venture company, VisionPower Semiconductor Manufacturing Company (VSMC), to build a 12-inch (300mm) wafer fab in Singapore.
In terms of investment, the wafer fab will require approximately $7.8 billion, with VIS contributing $2.4 billion and holding a 60% stake, and NXP contributing $1.6 billion and holding a 40% stake. VIS will operate the fab. Additionally, both parties have committed a total of $1.9 billion in long-term capacity guarantee deposits and usage fees, with the remaining funds (including loans) to be provided by other entities.
Regarding capacity planning, VSMC will be an independent wafer manufacturing service provider, offering a certain proportion of capacity to both partners. By 2029, the fab is expected to reach a monthly capacity of 55,000 12-inch wafers, creating about 1,500 jobs in Singapore. Furthermore, upon the successful mass production of the first fab, the partners will consider constructing a second fab.
The fab will employ 130nm to 40nm technology to produce mixed-signal, power management, and analog products for markets including automotive, industrial, consumer electronics, and mobile terminals. The related technology licenses and transfers are expected to come from TSMC. VSMC plans to begin construction of the first fab in the second half of 2024, pending regulatory approval, with mass production starting in 2027.
Currently, VIS operates five 8-inch wafer fabs, located in Taiwan and Singapore. Specifically, three 8-inch fabs are in Hsinchu, and one 8-inch fab is in Taoyuan. The average monthly production capacity in 2023 was about 279,000 8-inch wafers.
Regarding the collaboration with NXP Semiconductors, VIS Chairman Fang Lue stated that both parties, previously only having 8-inch fabs, desired a 12-inch fab. The new fab has already secured more than half of its capacity through long-term commitments from multiple clients, including NXP. Additionally, there are several advantages to establishing a fab in Singapore.
Notably, VIS is a subsidiary of leading wafer foundry TSMC. The industry believes that one key driver for VIS’s new fab is the demand from TSMC’s customers for mature processes. Although processes above 90nm account for only a small percentage of TSMC’s revenue, retaining all customers is crucial, which involves accommodating various manufacturing orders. Consequently, VIS takes over TSMC’s customer orders. Due to multiple factors, market transfer effects are expanding, and VIS recently received new orders from several customers, including Qualcomm and Monolithic Power Systems (MPS), with these effects expected to become apparent in the second half of the year.
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Exploring Singapore Semiconductor layout further, major companies are frequently seen.
Singapore is regarded as the “bridgehead” of Asia’s semiconductor industry. Singapore has a complete semiconductor industry chain, covering design, manufacturing, packaging, testing, equipment, materials, and distribution, with over 300 semiconductor-related enterprises.
According to incomplete statistics from Global Semiconductor Watch, many semiconductor companies such as Texas Instruments, STMicroelectronics, Infineon, Micron, GlobalFoundries, TSMC, UMC, VIS, and ASE have established branches or expanded factories in Singapore.
| Company Name | Factory Situation | Content |
| TSMC | 1 8-inch wafer fab – SSMC | Mainly produces analog, mixed signal, and micro-electromechanical chips |
| GlobalFoundries | 2 wafer fabs, 1 assembly, and test factory | Mainly produces analog, mixed-signal, and micro-electromechanical chips |
| VISC | 8-inch wafer fab | Mainly produces analog, mixed-signal, and micro-electromechanical chips |
| VISC | First 12-inch wafer fab | Construction is expected to start in the second half of 2024, mass production in 2027, and capacity reaching 55,000 12-inch wafers per month by 2029 |
| UMC | 8-inch wafer fab – Fab12i | Mainly produces analog and embedded processor chips (The new factory will start mass production in early 2025) |
| TI | 2 wafer fabs, 1 assembly and test factory | Mainly produces analog and embedded processor chips |
| STM | 2 wafer fabs, 1 assembly, and test factory | Mainly produces power and automotive electronic chips |
| Micron | 4 wafer fabs, 1 assembly, and test factory | Mainly produces memory chips, including DRAM, NAND, and NOR flash memory |
| Singapore Technologies Semiconductor | 1 local assembly and test factory | Mainly provides packaging and testing services for communication, computing, and consumer electronics |
| Singapore Microelectronics | 1 local assembly and test factory | Mainly provides packaging and testing services for communication, computing, and consumer electronics |
| ASE | 2 assembly and test factories | Mainly provides packaging and testing services for automotive electronics, communication, computing, and consumer electronics |
| JCET | 1 local assembly and test factory | Mainly provides packaging and testing services for communication, computing, and consumer electronics |
| ASM | 1 semiconductor equipment factory | Mainly produces chemical vapor deposition and layer deposition equipment |
| KLA | 1 semiconductor equipment factory | Mainly produces wafer inspection and metrology equipment |
In the wafer foundry sector, TSMC, GlobalFoundries, UMC, and VIS have all set up operations here. VIS has one 8-inch wafer fab and another 12-inch fab under construction. TSMC has one 8-inch wafer fab in Singapore, established in 1999 as a joint venture with NXP Semiconductors.
GlobalFoundries operates five wafer fabs in Singapore, including the 12-inch Fab 7, which focuses on 130nm to 40nm processes, BULK, and SOI technologies, with a monthly capacity of up to 50,000 300mm wafers (or 112,500 200mm wafers). Fab 6 manufactures 180nm wafers, mainly high-integration CMOS and RF CMOS products like Wi-Fi and Bluetooth control chips. The 8-inch fabs are distributed across Fab 2, Fab 3, and Fab 5.
In 2010, GlobalFoundries acquired Chartered Semiconductor Manufacturing Company in Singapore, taking over its fabs. In September 2023, GlobalFoundries officially inaugurated a $4 billion expansion of its manufacturing facility in Singapore, further increasing global capacity. The expanded fab will produce an additional 450,000 300mm wafers annually, raising GlobalFoundries Singapore’s total capacity to approximately 1.5 million 300mm wafers per year.
UMC has an 8-inch wafer fab in Singapore. In February 2022, UMC announced the third phase of expansion for its Fab 12i in Singapore. The first batch of equipment for the new fab has been delivered. UMC stated that it has operated a 12-inch wafer manufacturing plant in Singapore for over 20 years, and the new Fab 12i P3 plant is also UMC’s advanced special process R&D center. The industry indicates that this expansion signifies UMC’s anticipation of recovering customer demand as the semiconductor market gradually rebounds.
Related:
- TSMC Global Fab Capacity and Process Node Overview
- TSMC Kumamoto Plant JASM Starts Mass Production
- Discover the Full Range of FAB Job Positions Explained
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