May 12, 2025 /SemiMedia/ — Vanguard International Semiconductor Chairman Leuh Fang said strong artificial intelligence demand continues to support semiconductor industry growth, adding that capacity for the company’s first-phase Singapore wafer fab has already been fully booked by customers.

Speaking during a media briefing on May 8, Fang said AI-related applications remain one of the key drivers behind semiconductor demand this year. He also noted that rising energy and material costs linked to the Iran conflict, together with the company’s ongoing investment spending, have pushed operating costs higher.

Vanguard had previously introduced pricing adjustments in response to the cost pressure. When asked whether additional increases could follow in the second half of the year, Fang said the company would continue working with customers if operating expenses keep rising.

The company also provided an update on its Singapore 12-inch wafer fab project under joint venture VSMC. Fang said construction began around 18 months ago, while large-scale equipment installation started roughly five months ago. More than 200 tools have already been moved into the cleanroom area.

According to Fang, the fab is expected to begin sample shipments to customers in July this year, with mass production targeted for the first quarter of next year.

He added that strong customer demand has already sold out first-phase capacity at the Singapore facility. The company now expects the fab could reach its full monthly capacity target of 44,000 wafers earlier than the original 2028 schedule.

Vanguard said the Singapore operation has already hired around 700 employees, with total headcount expected to exceed 1,000 once the fab reaches full utilization.