Vanguard Speeds Up Singapore Fab Amid Geopolitical Strains

Vanguard International Semiconductor is accelerating construction of its 12-inch fab in Singapore. The move, which is a joint venture with NXP Semiconductors, comes amid geopolitical risks and U.S. tariffs. Though production is on schedule and expected to start in 2027, uncertainties remain on full-year demand.

Taiwan's Vanguard International Semiconductor is expediting the building of its 12-inch fab in Singapore. The decision is influenced by geopolitical risks and customers seeking alternatives outside China for chip production.

The plant, a collaboration with NXP Semiconductors, is progressing well and is slightly ahead of schedule, with mass production slated for 2027. Vanguard Chairman Leuh Fang noted that U.S. tariffs have prompted some customers to place urgent orders, although market uncertainties may still impact overall demand.

Despite these challenges, Vanguard exports less than 1% of its chips to the United States, highlighting its strategic positioning in the global market.

(With inputs from agencies.)