Vanguard International Semiconductor and NXP put $320 million into their Singapore fab since August
VSMC, the Singapore fab venture held about 60% by Vanguard and 40% by NXP, resolved three cash calls at US$1 par between August and October, each filed as "company operating needs". Vanguard's share, about NT$6.1 billion, tops its first-half profit, and volume revenue starts only in 2027.
Vincent Jiang · 3 min read
Three cash calls at par value
On August 7, September 7 and October 7, 2026, the board of VisionPower Semiconductor Manufacturing Company resolved cash capital increases of $135 million, $85 million and $100 million 1.
VSMC is the Singapore joint venture of Vanguard International Semiconductor−7.99% — Vanguard International Semiconductor, down 7.99 percent today, the Taiwan-listed specialty foundry, and NXP−2.11% — NXP, down 2.11 percent today Semiconductors of the Netherlands, and every round carried the same terms: US$1 par value, shares issued at face value with no premium, taken entirely by the existing shareholders, purpose filed as "company operating needs" 1. That is $320 million in three months, into a fab that held its grand opening between the second and third call 1.
A sold-out fab, and a bill that outruns the profit
The Tampines plant opened on September 28 after a 22-month build, with first-sample yields above 99%; volume production begins in the first quarter of 2027, toward 44,000 wafers a month by 2029 2. The first phase is fully committed under long-term agreements 1. Vanguard holds about 60% and operates the fab, and NXP paid $1.6 billion for the other 40% 3 4.
At the third quarter's average rate of NT$31.98 to the dollar 5, Vanguard's share of the three calls comes to about NT$6.1 billion, against NT$5.22 billion of net profit for the whole first half 1. NXP's 40% of the October round is about $40 million, in the month its board added a $5 billion buyback to $1.3 billion still authorized, on quarterly revenue of $3.79 billion 6.
VSMC drew $320 million from its parents in three monthly rounds
Data
| Cash capital increase | |
|---|---|
| 7 Aug 2026 | $135M |
| 7 Sep 2026 | $85M |
| 7 Oct 2026 | $100M |
The parents signed up for this
Pre-revenue spending is how fabs are financed, and this one was always sized in billions: $7.8 billion when the venture was formed in 2024, later trimmed to about $6.7 billion when silicon interposers, the packaging layer AI accelerators sit on, replaced part of the planned wafer capacity 4 7.
Vanguard's own business is accelerating too: September revenue of NT$5.90 billion, up 15.51%, first-nine-month revenue up 18%, third-quarter gross margin guided at 32.5 to 34.5% 1. Chairman Leuh Fang says 2027 price increases will not be smaller than this year's 3. No filing discloses what the ramp still needs for 2027, and a second Singapore fab is already in evaluation 1 4.
What November 6 settles
Vanguard reports third-quarter results and fourth-quarter guidance on November 6, its first call since the opening 1. The stock closed at NT$144.0 on October 30, down 14.03% over two sessions as AI and chip shares sold off worldwide 1 8. The questions to put to management: the 2027 capital budget, the second fab, and whether interposer work becomes a disclosed revenue line 3. In three months, Vanguard has paid more into this fab than it earned in the entire first half of the year.
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