[News] TSMC Offloads Gear to Vanguard JV in Singapore, Reportedly Eases Off Mature Node Production

According to a report from Commercial Times, TSMC’s board on May 13 approved the sale of equipment to VisionPower Semiconductor Manufacturing Company (VSMC), a Singapore joint venture between its subsidiary Vanguard and NXP. As TSMC shifts toward more advanced nodes, it is scaling back mature node operations and reallocating resources, supply chain sources indicate.

The transaction is estimated to be valued between USD 71 million and USD 73 million, with expected disposal gains ranging from USD 21.9 million to USD 23.9 million, according to the report.

With personnel being reassigned from older fabs to support advanced packaging facilities, TSMC is scaling back certain mature node operations—particularly at the 0.13μm, 90nm, 65nm, and 40nm levels, the report states.

The report also notes that within the TSMC Group’s foundry strategy, the two companies are pursuing different paths—TSMC is focused on advanced to angstrom-class nodes, while Vanguard is targeting the 40nm and above segment.

As the report points out, Vanguard Vice President and CFO Amanda Huang said VSMC’s first 12-inch wafer fab is expected to begin production in 2027, with monthly capacity reaching 55,000 wafers by 2029 and creating around 1,500 jobs. The company plans to build capacity for 130nm to 40nm processes, with the fab set to produce mixed-signal, power management, and analog chips for automotive, consumer electronics, high-performance computing, and mobile applications. Construction is reportedly progressing smoothly, the report adds.

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(Photo credit: TSMC)