Taiwan Semiconductor Manufacturing Company is reportedly considering a new fabrication plant in Singapore, highlighting the city-state’s strategic push to expand its role in advanced chipmaking and AI supply chains, amid rising industry demand and recent investments by other semiconductor firms.
Taiwan Semiconductor Manufacturing Company is considering building a new fabrication plant in Singapore, according to reports citing people familiar with the matter. The talks come soon after speculation that the world’s largest contract chipmaker was also assessing a major new site in Texas. TSMC declined to comment on the rumour, while Singapore’s Economic Development Board also refused to respond, leaving the proposal unconfirmed.
If the discussions are real, they would fit Singapore’s long-standing effort to attract more advanced semiconductor investment. The city-state already hosts chip manufacturing from companies including GlobalFoundries and United Microelectronics Corporation, and it has been working to strengthen its role in the broader artificial intelligence supply chain as major technology groups maintain regional bases there. Reuters has previously reported that Singapore sees semiconductor and AI-linked manufacturing as strategic areas for future growth.
The latest reports also arrive just days after VisionPower Semiconductor Manufacturing Company, the Singapore joint venture between Vanguard International Semiconductor and NXP Semiconductors, opened a new 300mm specialty wafer fab in Tampines on 28 September. Industry reports said the plant was already fully booked for its initial ramp-up and was due to begin volume production in the first quarter of 2027. The facility is geared towards mixed-signal, power management and analogue chips, and includes silicon interposer production for advanced packaging used in high-end AI accelerators.
VSMC’s launch underlines how established foundry players are deepening their footprint in Singapore. According to reporting in May, Vanguard International Semiconductor had already been evaluating a second 12-inch fab because its existing capacity was tight, and it had adjusted the Singapore site’s product mix to include silicon interposers. TSMC has historical ties to Singapore as well: in 2000, it helped build the SSMC fab there with Philips Semiconductors and the Singapore Economic Development Board, a project that was completed ahead of schedule and became an early reference point for the country’s chipmaking ambitions.
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