NXP Semiconductors will form a 40-60 joint-venture with Vanguard International Semiconductor to build a new 300mm semiconductor wafer manufacturing facility in Singapore with an initial investment of $7.8 billion.
The name of the JV will be VisionPower Semiconductor Manufacturing Company and its fab will support 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets. TSMC will transfer the process technologies.
The JV will begin construction of the initial phase of the wafer fab in the second half of 2024. Its initial production will be available to customers during 2027. The JV will operate as a commercial foundry supplier, providing assured proportional capacity to both partners, with an expected output of 55,000 300mm wafers per month in 2029.
The JV will create approximately 1,500 jobs in Singapore.
The cost of the initial build out is anticipated to be $7.8 billion. VIS will inject $2.4 billion representing a 60 percent equity position in the joint venture and NXP will inject $1.6 billion for the 40 percent equity position.
VIS and NXP have agreed to contribute an additional $1.9 billion to support the long-term capacity infrastructure. The remaining funding including loans will be provided by third parties to the joint venture. The fab will be operated by VIS.
“This project aligns with our long-term development strategies, demonstrating VIS’ commitment to meeting customer demands, and diversifying our manufacturing capabilities,” said VIS Chairman Leuh Fang. “This fab will be built adopting the Singapore Green Mark standards and implementing rigorous green manufacturing measures.”
Kurt Sievers, NXP President and CEO, said: “VIS is well suited and fully understands the complexities involved in building and operating together with NXP a 300mm analog mixed signal fab. The joint venture partnership we intend to create with VIS perfectly aligns within NXP’s hybrid manufacturing strategy.”