NXP, TSMC Form JV TO Build Chip Plant In Singapore

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NXP Semiconductor NV collaborates with a company, partly owned by Taiwan Semiconductor Manufacturing Corp., to construct a $7.8 billion chip wafer plant in Singapore, elevating tech aspirations.

Vanguard International Semiconductor (VIS), an affiliate of TSMC, formed a joint venture with Netherlands-based NXP Semiconductors N.V. to establish a 12-inch wafer fab in Singapore. announced the plan to create a manufacturing joint-venture The new entity, VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) involves a total investment of US$7.8 billion. VIS contributes US $2.4 billion for a 60% stake, while NXP invests US $1.6 for a 40% share. Additionally, both companies have agreed to contribute an additional $1.9 billion which will be utilised to support the long-term capacity infrastructure.

The joint venture builds a new 300mm semiconductor wafer manufacturing facility in Singapore. The fab will support 130 nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets. The underlying process technologies are planned to be licensed and transferred to the joint venture from TSMC.

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Construction of the initial phase of the wafer fab in the second half of 2024, pending receipt of all required regulatory approvals, with initial production available to customers during 2027. 

The joint venture operates as an independent, commercial foundry supplier, providing assured proportional capacity to both equity partners, with an expected output of 55,000 300mm wafers per month in 2029. The joint venture creates 1,500 jobs in Singapore. 

According to VIS Chairman Leu Fang expresses satisfaction in collaborating with NXP to build their first 300mm fab. This project aligns with their long-term development strategies, demonstrating VIS’ commitment to meeting customer demands, and expanding manufacturing capabilities. He revealed that this fab will be built adopting the Singapore Green Mark standards and implementing rigorous green manufacturing measures. 

NXP President and CEO,Kurt Sievers, emphasised that NXP continues to take proactive actions to ensure it has a manufacturing base which provides competitive cost, supply control, and geographic resilience to support our long-term growth objectives,” 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.

Wafers are a thin slice of semiconductor material used to make microchips.

For customers who are seeking to de-risk amid intensifying U.S.-China tensions, TSMC is building new plants in countries such as Japan and, USA. According to sources, NXP invested in TSMC’s first chip plant in Dresden, Germany, and TSMC’s first plant in Europe.

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