NXP, Vanguard to build US$8 billion analog wafer fab in Singapore
With help from TSMC, Vanguard International Semiconductor Corp. (Hsinchu, Taiwan) and NXP Semiconductors NV (Eindhoven, The Netherlands) are forming a joint venture called VMSC that will build a 300mm wafer fab in Singapore.
VisionPower Semiconductor Manufacturing Company Pte. Ltd. will operate as a foundry and make 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets.
TSMC is set to provide underlying process technologies under license.
This provide an interesting symmetry as TSMC was originally founded with support from Philips Semiconductors, the predecessor of NXP, which provided TSMC’s first CMOS process technology.
Construction of the JV fab is set to begin in 2H24 with initial production becoming available in 2027. The fab will operate as an independent, commercial foundry supplier, while 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 fab will be operated by Vanguard which already has a 200mm wafer fab in Singapore.
The cost of the first phase is expected to be US$7.8 billion. VIS will provide $2.4 billion to take a 60 percent stake in the JV and NXP will pay $1.6 billion for 40 percent ownership. The remaining funding will be provided by third parties to the joint venture in the form of loans and in other ways.
VIS and NXP have agreed to contribute an additional $1.9 billion which will be utilized to support the long-term capacity infrastructure.
Quotes
“VIS is pleased to work with leading global semiconductor company NXP to build our first 300mm fab,” said VIS chairman Leuh Fang.
Kurt Sievers, CEO of NXP, commented: “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.”
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