SINGAPORE – VisionPower Semiconductor Manufacturing Company (VSMC) held a ground-breaking ceremony on Dec 4 for its US$7.8 billion (S$10.5 billion) semiconductor plant in Tampines Wafer Park.

Set to start initial production in 2027, it will create 1,500 jobs and produce 55,000 wafers a month when operating at full capacity by 2029. A wafer is a thin, round slice of semiconductor material, such as crystalline silicon, from which integrated circuits – also called microchips – are carved out.

The VSMC wafers will support production of 40 nanometer (nm) to 130nm mixed-signal, power management and analog chips – usually referred to as legacy nodes or specialty chips.

Speaking at the ceremony, Minister for Manpower and Second Minister for Trade and Industry Tan See Leng said Singapore over the years has developed itself into a critical node for the global semiconductor value chain, especially in the production of specialty chips. 

He said the semiconductor sector now represents about 8 per cent of the Republic’s gross domestic product, and accounts for 10 per cent of the manufacturing workforce.

“We want to preserve this competitive edge by bringing in high-quality investments that benefit our economy and people. VSMC’s new plant is very much aligned with that goal,” he added.

Dr Tan said of the 1,500 jobs to be created by VSMC, a sizeable portion will be professional, managerial, executive and technical roles required to operate the state-of-the-art automated systems at the plant.

VSMC said the plant will adopt a fully automated production model, integrating an automated material handling system and comprehensive quality management through artificial intelligence (AI) applications. This will result in fast, precise, high-yield and high-quality manufacturing.

Dr Tan said the facility will also need chemists, data scientists and tech experts who can develop new materials, optimise manufacturing processes and operate AI-enabled analytics platforms.

VSMC – a joint venture between Taiwan’s Vanguard International Semiconductor (VIS) and the Netherland’s NXP Semiconductors – will reinforce Singapore’s position as a major supplier of legacy chips, which are larger than 28nm and used by makers of automobiles, including electric vehicles, and consumer electronics, such as mobile phones.

VIS, which has an 8-inch wafer plant in Singapore, is backed by the world’s top chipmaker Taiwan Semiconductor Manufacturing Company (TSMC). 

NXP is one of the world’s top producers of automotive, industrial and internet-of-things, mobile, and communications infrastructure and has operations in 30 countries, including Singapore, where it is the major stakeholder in chipmaker SSMC in partnership with TSMC.

Dr Tan said the new plant will further strengthen VIS’ and NXP’s partnerships with existing local suppliers and open new opportunities for new vendors.

“The investment (VSMC) will also build stronger capabilities in our local suppliers – ranging from those supplying specialty gases and chemicals, consumables, to those providing facilities and transport services,” he said. 

VSMC and VIS chairman Leuh Fang said: “Designed with modern technology and guided by green manufacturing principles, the fabrication plant reflects our firm commitment to the future. VSMC is dedicated to being a responsible corporate citizen, supporting economic growth while ensuring environmental sustainability.”