Vanguard International Semiconductor and NXP Semiconductors are set to build a$7.8 billion chip manufacturing plant in Singapore to cater to the rising demand in the region. The joint venture between Taiwan-based Vanguard, partly owned by Taiwan Semiconductor Manufacturing Co. (TSMC), and Dutch chip maker NXP will establish a 300 mm semiconductor wafer manufacturing facility. Construction is scheduled to commence in the second half of 2024, with initial production expected by 2027. Vanguard will hold a 60% stake in the venture, while NXP will own the remaining 40%.

The new facility will produce chips for the automotive, industrial, consumer, and mobile markets. That's part of a broader global trend, as countries and companies invest heavily to secure a leading position in the semiconductor industry. According to the consulting firm International Business Strategies, the industry is projected to surpass$1 trillion by the decade's end.

Other nations are also ramping up their semiconductor investments. South Korea recently announced a$19 billion support package for its chip industry. China raised$48 billion for its largest national semiconductor fund, and Japan and the EU have committed significant government support to bolster their semiconductor sectors.