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| Vanguard and NXP to build a semiconductor facility in Singapore |
Vanguard International Semiconductor Corp (VIS), a Taiwanese foundry, and NXP are forming a joint venture named VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) to build a new 300mm semiconductor wafer manufacturing facility in Singapore.
The facility will produce 130nm to 40nm mixed-signal, power management, and analog products for the automotive, industrial, consumer, and mobile markets.
The underlying process technologies will be licensed and transferred to the joint venture from TSMC.
"NXP continues to take proactive actions to ensure it has a manufacturing base that provides competitive cost, supply control, and geographic resilience to support our long-term growth objectives," said Kurt Sievers, NXP President and CEO. "We believe VIS is well suited and fully understands the complexities involved in building and operating a 300mm analog mixed-signal fab with NXP. The joint venture aligns perfectly with NXP’s hybrid manufacturing strategy."
Construction of the wafer fab’s initial phase will begin in the second half of 2024, pending regulatory approvals, with production starting in 2027.
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| Semiconductor chip factory in Singapore |
The joint venture will operate as an independent, commercial foundry supplier, providing proportional capacity to both partners, with an expected output of 55,000 300mm wafers per month by 2029.
The venture will create about 1,500 jobs in Singapore. A second phase will be considered and developed pending commitments from both partners after the successful ramp-up of the initial phase.
The initial build-out will cost $7.8 billion. VIS will contribute $2.4 billion for a 60% equity position, and NXP will invest $1.6 billion for the remaining 40%. Additionally, VIS and NXP will contribute another $1.9 billion to support long-term capacity infrastructure.
The remaining funding, including loans, will be provided by third parties. VIS will operate the fab.
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