Taiwan invests in Singapore chips

Vanguard global Semiconductor (VIS) – the daughter of the world's leading semiconductor maker Taiwan Semiconductor Manufacturing Co. (TSMC) which owns 28.3% of VIS shares, plans to open a fresh mill of 12-inch chips for the automotive industry. The VIS investment is to be worth at least $2 billion. VIS president Leuh Fang did not specify the time frame for the investment.

The fresh mill is to be located close the VIS purchased from GlobalFoundries in 2019 for 236 million USD mill 8-inch chips in Tampines, Singapore. About 10 minutes from the fresh mill is the Systems on Silicon Manufacturing Co. mill (SSMC), which is jointly owned by the TSMC and the Dutch NXP Semiconductors. The second largest Taiwanese maker of United Microelectronics Corp chips (UMC) is besides making its 5 billion USD investment nearby. Investment expansion in Singapore is besides performed by the Yankee Global Foundries and Applied Materials.

The VIS investment coincides with the TSMC's expansion into nipponese and Yankee markets. The founder of the TSMC Morris Chang pointed out as desirable locations of Japan and Singapore, however, besides pointing out that the deficiency of land, water and electricity would be a barrier for the latter. Taiwanese tycoon investments, which are almost monopolistic in chip production, which in turn are strategically crucial for the safety of high-tech economies, are responding to the expectations of customers and business partners from Europe and Asia, fearing breaking supply chains in the event of the escalation of the US and China's conflict over Taiwan.

The VIS has so far produced 8-inch integrated circuits, considered little advanced than 12-inch ones. However, it has a marketplace position as a chip supplier liable for display and management drivers. Increase the surface of the board with chips from 8 inches (203.2 mm) to 12 inches (304.8 mm), increases its performance. However, VIS will not focus in its marketplace strategy on the production of state-of-the-art chips as TSMC does, but on the production of long-term chips with industrial and automotive applications.

Ronald Lasecki