VIS and NXP Announce Joint Venture for Singapore Wafer Fab

Vanguard International Semiconductor Corporation and NXP Semiconductors N.V. today announce the plan to create a manufacturing joint-venture VisionPower Semiconductor Manufacturing Company Pte Ltd (“VSMC”) which   will   build   a   new   300mm   semiconductor wafer   manufacturing   facility   in   Singapore.   The   joint-venture fab will support 130nm 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.
The joint venture will begin 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 will operate 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 will create   approximately   1,500   jobs in Singapore. Upon   the successful   ramp   of the initial phase, a second phase will be considered and developed pending commitments by both equity   partners.
The   total   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 remaining 40 percent equity position. VIS and NXP have agreed to contribute an additional $1.9 billion which will be utilized 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.
“VIS is pleased to work with leading global semiconductor company NXP to build our first 300mm fab. 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. “Adhering to   the   vision of   business sustainability,   this fab   will   be built adopting the Singapore   Green   Mark standards and implementing rigorous green manufacturing measures. We will continue to create great value for our stakeholders and look forward to working with customers, suppliers, local talents, and government to continuously contribute to Singapore and the global semiconductor ecosystem.”
“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 Kurt Sievers, NXP President and CEO. “We believe 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.”