Vanguard International Semiconductor, an affiliate of Taiwan Semiconductor Manufacturing Company, will build a $7.8 billion semiconductor manufacturing plant in Singapore together with Dutch chipmaker NXP Semiconductors.

The two companies announced the joint investment following coordination with Singapore's Economic Development Board, which promotes advanced manufacturing projects in the city-state. The plant will add substantial new wafer capacity to Vanguard's footprint and strengthen Singapore's position as a semiconductor production hub.

Vanguard operates as a subsidiary within the TSMC group and specializes in mature and specialty process nodes. These technologies serve end markets including automotive electronics, industrial controls, power management and consumer devices — segments where NXP is also a major supplier. The partnership pairs a foundry operator with a chip designer that will act as both customer and co-investor.

The $7.8 billion figure places the project among the largest single semiconductor manufacturing investments announced for Singapore. The city-state already hosts fabrication facilities operated by several global chipmakers and supplies a significant share of the world's finished semiconductor output.

For Vanguard, the Singapore site represents a geographic expansion beyond Taiwan. Building capacity outside its home market diversifies production risk and positions the company closer to customers across Southeast Asia and other Asian supply chains.

For NXP, the arrangement secures long-term access to specialty wafer capacity at a time when automotive and industrial chipmakers continue to lock in supply through direct investments in fabrication partners. Co-investment models of this kind have become a common mechanism for fabless and product companies seeking guaranteed allocation without operating fabs themselves.

Singapore's government has actively courted such projects. The Economic Development Board has promoted incentives for semiconductor manufacturing, and the Vanguard–NXP plant stands as one of the headline results of that effort. The investment reinforces the country's strategy of anchoring capital-intensive chip production alongside its existing electronics ecosystem.

Construction timelines, target process technologies, planned monthly wafer output and the precise ownership split between Vanguard and NXP were not specified in the announcement as reported. Additional technical and financial details are expected as the project moves toward groundbreaking.

The deal signals continued momentum in global semiconductor capacity expansion, particularly in mature-node manufacturing, where demand from automotive and industrial customers has driven sustained investment across Asia. Singapore, with established infrastructure, skilled labor and government support, competes for these projects alongside Taiwan, Japan, Malaysia and other regional manufacturing centers.

Vanguard's involvement also extends the TSMC group's international manufacturing presence. TSMC itself operates or is building fabs in the United States, Japan and Germany, and its affiliates' investments add further geographic reach for the broader group.

The announcement was carried by Singapore's Economic Development Board and widely picked up across industry outlets.