TAIPEI (Taiwan News) — Taiwanese chipmaker Vanguard said Friday it would hasten construction of its plant in Singapore due to geopolitical risks.

Vanguard Chair Fang Leuh (方略) told reporters that some customers had placed urgent orders after US tariff announcements, per Reuters. He said many uncertainties could impact this year’s demand.

The report noted customers are seeking new ways to produce chips outside of China. Fang said he believes the pace of orders to Taiwan would not suffer, partly because of US-China trade tensions. 

He noted US customers have sought to secure their supply chains and buy chips from outside China.

Fang also stated that Trump’s tariffs would not greatly impact the company since the proportion of its products directly exported to the US is low. Vanguard exports less than 1% of its chips directly to the US. 

He added the company is not considering setting up manufacturing in the US.

Vanguard unveiled its plans to build the Singapore fab last year, as part of a joint venture with European chipmaker NXP Semiconductors. The Taiwan company said construction is on schedule, with mass production set to begin in 2027.