TSMC Affiliate Vanguard Weighs Second Singapore Chip Plant as AI Demand Drives Shortages

VisionPower Semiconductor Manufacturing Co., a venture between Vanguard International Semiconductor Corp. and NXP Semiconductors NV, is considering a second chipmaking plant in Singapore, Vanguard Chairman Leuh Fang said. The facility could produce more advanced chips than VSMC's first Singapore plant, which was inaugurated Sept. 28, 2026, in the eastern part of the city-state. Construction of the first plant began in late 2024 with an estimated $7.8 billion investment. Fang declined to estimate the second plant's cost, citing unresolved technology choices that will determine total investment size. Fang said semiconductor supply shortages driven by artificial intelligence and data-center demand "will last for a while." The boom has pushed Taiwanese manufacturers to build production abroad, with Singapore drawing global investment.