News
Vanguard forecasts explosive semiconductor demand growth by 2026 and expands mature node capacity
Friday, January 16, 2026 at 01:39 AM
The chairman of Vanguard International Semiconductor (VIS) anticipates explosive growth in chip demand by 2026 driven by AI data center expansion. The company is actively investing in expanding capacity for power management ICs (PMIC) and discrete components to meet sustained demand for mature process technologies.
Context
Vanguard International Semiconductor (VIS), a key affiliate of TSMC, projects an "explosive" surge in semiconductor demand by 2026. This outlook is driven by the persistent AI data center boom, which requires a massive volume of mature-node chips to support power delivery and hardware infrastructure. While advanced logic often leads the narrative, VIS emphasizes that demand for power management integrated circuits (PMICs) and discrete components remains a critical bottleneck for global tech expansion.
To meet this anticipated peak, VIS is aggressively scaling production, highlighted by its $7.8 billion joint venture with NXP Semiconductors to construct a 300mm wafer fab in Singapore. Management expects 2025 to serve as a recovery phase, with 2026 marking a major growth inflection point. By focusing on legacy nodes between 130nm and 40nm, VIS aims to secure its position as the primary provider for the essential analog and power chips that keep AI clusters operational.
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