Vanguard International Semiconductor Corp. approved the purchase of equipment worth up to $73 million from parent company Taiwan Semiconductor Manufacturing Co. to outfit its first 12-inch wafer fabrication facility.
The Taiwanese specialty foundry’s board authorized the acquisition of machinery designed to produce mature technology nodes from 130nm to 40nm, according to a company statement on Monday. The equipment will support VIS’s upcoming Singapore facility, which is expected to begin operations in 2027.
This move comes as part of VIS’s broader strategy to expand beyond its current 8-inch wafer operations. The company, in which TSMC holds a 28.3% stake, previously announced a joint venture with NXP Semiconductors to build the 12-inch facility in Singapore, with a total investment of approximately $7.8 billion.
“The equipment purchase is essential for building our 12-inch wafer capacity,” said Huang Hui-lan, VIS’s vice president and chief financial officer.
The Singapore fab represents a significant geographic expansion for VIS, which currently operates five 8-inch facilities across Taiwan and Singapore. Once operational, the new plant is projected to produce 55,000 wafers monthly by 2029, primarily targeting automotive, industrial, and consumer markets.
The equipment transaction, valued between NT$71 million and NT$73 million (US$71-73 million), reflects the continuing strategic relationship between VIS and TSMC, with the latter providing crucial technology transfer for the expansion project.
