VSMC begins work on $10.5b chip plant that'll create 1,500 jobs

Plant will produce 55,000 wafers a month when at full capacity by 2029

- Ovais Subhani

VisionPower Semiconductor Manufacturing Company (VSMC) held a ground-breaking ceremony on Dec 4 for its US$7.8 billion (S$10.5 billion) semiconductor plant in Tampines Wafer Park.

Set to start initial production in 2027, it will create 1,500 jobs and produce 55,000 wafers a month when operating at full capacity by 2029. A wafer is a thin, round slice of semiconductor material, such as crystalline silicon, from which integrated circuits - also called microchips - are carved out.

The VSMC wafers will support production of 40 nanometer (nm) to 130nm mixed-signal, power management and analog chips usually referred to as legacy nodes or specialty chips.

Speaking at the ceremony, Minister for Manpower and Second Minister for Trade and Industry Tan See Leng said Singapore has over the years become a critical node for the global semiconductor value chain, especially in the production of specialty chips.

He said the semiconductor sector now represents about 8 per cent of the Republic's gross domestic product, and accounts for 10 per cent of the manufacturing workforce.

"We want to preserve this competitive edge by bringing in high-quality investments that benefit our economy and people. VSMC's new plant is very much aligned with that goal," he added.