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Home > Finance > Taiwan's Vanguard to hasten construction of Singapore factory

Taiwan's Vanguard to hasten construction of Singapore factory

Published by Global Banking & Finance Review®

Posted on April 11, 2025

1 min read

Last updated: January 24, 2026

Taiwan's Vanguard to hasten construction of Singapore factory - Finance news and analysis from Global Banking & Finance Review

Quick Summary

Vanguard is expediting its Singapore factory construction due to geopolitical risks, with production set for 2027. The move is part of a joint venture with NXP Semiconductors.

Vanguard to Expedite Singapore Factory Construction Amid Risks

By Wen-Yee Lee

TAIPEI (Reuters) -Taiwan's Vanguard International Semiconductor said on Friday it will speed up construction of its 12-inch wafer fab in Singapore as geopolitical risks prompt customers to seek more options to make chips outside China.

Construction of the factory, part of VSMC, a joint venture Vanguard unveiled last year with European chipmaker NXP Semiconductors, is on schedule and even slightly ahead, with mass production expected to begin in 2027, it added.

Vanguard specialises in legacy chips that go into products from cars to display panels. Chinese competitors have been aggressively building up manufacturing capacity for the chips in recent years.

Vanguard Chairman Leuh Fang told reporters some customers had also placed urgent orders due to hefty U.S. tariffs, but added a lot of uncertainties could still affect full-year demand.

The company exports less than 1% of its chips directly to the United States.

(Reporting by Wen-Yee Lee; Editing by Clarence Fernandez and Kate Mayberry)

Key Takeaways

•Vanguard is accelerating its Singapore factory construction.
•The factory is a joint venture with NXP Semiconductors.
•Mass production is expected to start in 2027.
•Geopolitical risks are influencing chip manufacturing decisions.
•US tariffs prompt urgent orders from some customers.

Frequently Asked Questions about Taiwan's Vanguard to hasten construction of Singapore factory

1What is the main topic?

The article discusses Vanguard's accelerated construction of a semiconductor factory in Singapore due to geopolitical risks.

2Why is Vanguard speeding up construction?

Vanguard is speeding up construction due to geopolitical risks and customer demand for chip manufacturing outside China.

3When is mass production expected to begin?

Mass production at the Singapore factory is expected to begin in 2027.

Vanguard to Expedite Singapore Factory Construction Amid Risks

By Wen-Yee Lee

Vanguard specialises in legacy chips that go into products from cars to display panels. Chinese competitors have been aggressively building up manufacturing capacity for the chips in recent years.

Vanguard Chairman Leuh Fang told reporters some customers had also placed urgent orders due to hefty U.S. tariffs, but added a lot of uncertainties could still affect full-year demand.

The company exports less than 1% of its chips directly to the United States.

(Reporting by Wen-Yee Lee; Editing by Clarence Fernandez and Kate Mayberry)

Frequently Asked Questions

1What is the main topic?

The article discusses Vanguard's accelerated construction of a semiconductor factory in Singapore due to geopolitical risks.

2Why is Vanguard speeding up construction?

Vanguard is speeding up construction due to geopolitical risks and customer demand for chip manufacturing outside China.

3When is mass production expected to begin?

Mass production at the Singapore factory is expected to begin in 2027.