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Vanguard International Semiconductor projects 2026 capex up to US$2.2 billion for Singapore fab expansion
Wednesday, February 4, 2026 at 01:47 AM
TSMC affiliate Vanguard International Semiconductor expects 2026 capital expenditure to reach NT$60 billion to NT$70 billion, driven primarily by the ramp-up of its joint venture fab in Singapore with NXP Semiconductors. The company reports a surge in demand for legacy process chips used in servers and power management ICs, leading to projected Q1 production line utilization of 80% to 85%.
Context
Vanguard International Semiconductor (VIS) is significantly increasing its capital investment, projecting a 2026 capex between NT$60 billion and NT$70 billion (US$1.9 billion to US$2.2 billion). This aggressive spending primarily supports the construction of its US$7.8 billion joint venture fab in Singapore with NXP Semiconductors, known as VSMC. The facility is slated to begin mass production of 300mm wafers by late 2026 or early 2027, targeting the 130nm to 40nm nodes critical for automotive, industrial, and power management applications.
The expansion comes as demand for legacy process chips—specifically Power Management ICs (PMICs)—surges due to the global buildup of AI server infrastructure. Supported by technology licenses from TSMC, VIS is seeing a rapid recovery in production line utilization, which is expected to reach 80% to 85% by Q1 2026. This marks a sharp climb from a 2024 low of 63%, signaling a robust turnaround in the mature node market as supply chains diversify away from Greater China.
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