VSMC Opens US$7.8 Billion Singapore Fab, Targets 2027 Production

VSMC, a joint venture between NXP and TSMC-backed Vanguard International Semiconductor, opened a US$7.8 billion chip fabrication plant in Singapore and plans to begin mass production in early 2027. [1][2][3] The facility began trial production in June after 18 months of construction, faster than the more than two years usually needed to build a chip factory, and VIS said first-batch chip yield reached at least 99%. [3]

The new factory’s capacity was reported as sold out as it entered operation amid demand from artificial intelligence infrastructure, and VIS has set its sights on building a second facility. [1][3] The fab will help TSMC produce interposers for advanced chip packaging that connect different chip types, serving AI chip manufacturers including Nvidia, Google and Broadcom; TSMC owns about 19% of VIS. [3]

VSMC is not only adding wafer capacity; its planned interposer work places the Singapore facility inside the advanced-packaging chain connecting different chip types. Nvidia, Google and Broadcom are named among the manufacturers served by that function, giving the fab a direct link to AI hardware. The 18-month build, at least 99% first-batch yield and sold-out capacity are concrete markers, but planned early-2027 mass production remains the next operational test. What the sources don't address: how much capacity each customer controls or what would determine whether the second facility proceeds.