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NXP, Vanguard tap TSMC tech for VSMC 300mm legacy fab

NXP, Vanguard tap TSMC tech for VSMC 300mm legacy fab

Business news |
By Nick Flaherty



NXP Semiconductor and Vanguard International Semiconductor (VIS) are to use TSMC process technology for a joint venture 300mm fab called VisionPower Semiconductor Manufacturing Company (VSMC).

The $10bn 300mm VSMC fab in Singapore will be used for power management and mixed signal devices from 40nm to 130nm for NXP customers and for VIS foundry customers from 2027. This comes as analysts are forecasting record fab capacity next year as 17 new fabs come online

However the move highlights the shift in emphasis for legacy fabs. The 200mm legacy fabs TSMC currently used for these are being repurposed for the increasing demand for chiplet assembly with CoWoS and InFO processes. VSMC will provide NXP with dedicated capacity under is own control for automotive customers to avoid the shortages seen during the pandemic.

NXP is providing $1.6bn for a 40% dedicated share of the 55,000 wafers a month for its automotive and industrial devices by 2029. VIS is funding the majority share of 60% for its foundry business with $2.4bn and will operate the fab.

NXP also has 10% of TSMC’s European fab, ESMC, which is set to come online in 2027 with leading edge FINFET logic technologt.

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. Upon the successful ramp of the initial phase, a second phase will be considered and developed pending commitments by both equity partners and $1.9bn more funding.

Pan-European NXP teams look to 5nm, 6G R&D

“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.”

VIS has five 8-inch fabs in Taiwan and Singapore with a monthly capacity of about 279,000 wafers in 2023.

www.nxp.com, www.vis.com.tw

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