(Sept 28): A venture by Taiwan Semiconductor Manufacturing Co’s smaller affiliate Vanguard International Semiconductor Corp is considering a second chipmaking plant in Singapore to meet growing demand.

VisionPower Semiconductor Manufacturing Co, a venture between Vanguard and NXP Semiconductors NV of the Netherlands, could make more advanced chips in the new facility than in its first plant in the city-state, Leuh Fang, chairman of Vanguard and the joint venture, said in an interview.

Rising demand for artificial intelligence services and the data centres to power them has led to global shortages of semiconductors, even with major producers such as TSMC constantly adding capacity. The boom has prompted Taiwanese manufacturers to venture abroad for new production plants, with Singapore among locations attracting global investment.

“The supply shortage will last for a while,” Fang said. “We should’ve built two plants together here.”

VSMC on Monday inaugurated its first Singapore chip plant, in the eastern part of the country. Construction of the facility started in late 2024, with the company estimating it will invest US$7.8 billion (RM31.84 billion). Fang declined to estimate the cost of the potential second plant.

“It’s still too early to talk about budget because we haven’t decided on what type of technologies to be used,” he said. “Different technologies will greatly affect total size of investment.”

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