[News] TSMC Affiliate VIS Reportedly Weighs Second 12-Inch Fab Amid Tight Capacity, Silicon Interposer Push
Vanguard International Semiconductor (VIS), a TSMC affiliate, commented on its future expansion plans, including those related to VSMC, its Singapore joint venture. According to UDN News, VIS Chairman Leuh Fang said the company is evaluating the construction of a second 12-inch fab, as existing capacity has already been fully booked by customers.
As the report notes, the company has adjusted the product mix at its Singapore fab in response to strong advanced packaging demand by adding silicon interposer products. As a result, the facility’s originally planned monthly capacity has been revised down from 55,000 wafers to 44,000 wafers.
The move marks a further expansion of VSMC’s product portfolio. According to Central News Agency, VSMC’s 12-inch fab in Singapore will continue using 30nm to 40nm technologies to produce silicon interposers, with the related technology licensing coming from TSMC. Liberty Times notes that industry observers believe this could position VIS to enter the AI advanced packaging CoWoS supply chain.
Another key factor behind the fully booked capacity is customers’ efforts to diversify geopolitical risks. As UDN News highlights, the Singapore fab provides an opportunity for such diversification. The fab is expected to begin mass production in 2027, while the original timeline for reaching full capacity in 2029 could potentially be accelerated.
VIS Accelerates Singapore Fab Ramp with TSMC Equipment Support
The company also said investment costs for the Singapore fab will be reduced from the originally planned US$7.8 billion to US$6.7 billion, benefiting from equipment support provided by TSMC. UDN News adds that VIS President John Wei said more than 200 tools have already been moved into the Singapore fab with support from TSMC and are currently being used for trial production.
Regarding the project’s funding structure, VIS will invest US$2.4 billion for a 60% stake, while joint venture partner NXP Semiconductors will invest US$1.6 billion for a 40% stake in VSMC. The remaining funding gap will be covered through long-term contract prepayments from customers, according to UDN News.
VIS Upgrades 8-Inch Capacity for Finer-Line Demand
As for its 8-inch fabs, UDN News says VIS President John Wei stated the company plans in 2026 to phase out and upgrade part of its mature-node capacity, shifting toward finer-line processes to meet customers’ long-term and steadily growing demand for 8-inch wafer products.
Meanwhile, VIS also provided its outlook for the current quarter. According to the report, recovering customer orders are expected to drive second-quarter wafer shipments up around 10% to 13% quarter-over-quarter, while average selling prices (ASP) are projected to increase about 2% to 5%. Benefiting from improving utilization rates and higher ASPs, gross margin is expected to remain above 31%.
Read more
- [News] UMC, VIS, PSMC Reportedly Eye Mature-Node Price Hikes Up to 10% From Apr.; IC Costs May Rise
- [News] TSMC Reportedly Set to Shift 80% of 8-Inch Output to Affiliate VIS, Doubling Its Capacity
(Photo credit: VIS)
