Taiwan Semiconductor Manufacturing Co. is selling manufacturing equipment to a Singapore joint venture between Vanguard International Semiconductor and NXP Semiconductors, underscoring the company’s strategic shift toward more advanced processes.
TSMC’s board approved the equipment sale to VisionPower Semiconductor Manufacturing Company (VSMC) for an estimated $71-73 million, which is expected to generate disposal gains of $21.9-23.9 million, according to a company statement. The transaction highlights TSMC’s asset optimization strategy as the world’s largest contract chipmaker increasingly focuses on cutting-edge technologies.
The deal comes as TSMC reallocates resources from mature production nodes to support its advanced packaging facilities. Supply chain sources indicate the company is making strategic choices regarding its 0.13 micron, 90nm, 65nm, and 40nm nodes, with personnel being redirected to support next-generation manufacturing.
“The equipment sale is mainly for asset optimization considerations,” said Meng-Hua Kao, TSMC’s public relations director. The company is simultaneously leasing factory space from its subsidiary Alchip Technologies in Longtan for NT$1.295 billion (US$42.4 million).
VSMC, established last year with a planned investment of $7.8 billion, expects to begin production in 2027 with a monthly capacity target of 55,000 300mm wafers by 2029. The facility will focus on 130nm to 40nm processes for mixed-signal, power management, and analog products serving automotive and consumer electronics markets.
The strategic realignment occurs as TSMC doubles down on advanced processes that fuel its record-breaking financial performance, with the company reporting NT$2.9 trillion in revenue for 2024, its highest annual sales since going public in 1994.
