NXP, VIS start VSMC joint venture fab
Vanguard International Semiconductor (VIS) and NXP Semiconductors are starting on their VisionPower joint venture fab in Singapore.
VIS and NCP have obtained all necessary approvals from relevant authorities and injected capital to officially establish the VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) joint venture. The company will now proceed with the planned construction of VSMC’s first 300mm wafer manufacturing facility later in 2024.
The total investment in the VSMC 300mm fab will be $7.8bn, down from the initial estimate of $10bn when the deal was announced in June. Initial production of power management and analog parts slated to begin in 2027 using 130nm to 40nm mixed-signal, power management and analog technologies for the automotive, industrial, consumer and mobile end markets.
“We express our gratitude to the governments and regulatory authorities of Taiwan, Singapore, and other countries for their strong support, which enabled us to obtain the necessary approvals and proceed with this significant investment as scheduled,” said VIS Chairman Leuh Fang. “VSMC’s first 300mm fab is a concrete manifestation of VIS’ commitment to meeting customer demands, expanding our manufacturing capacity, and diversifying our global manufacturing bases.”
“We thank all the relevant government agencies for moving with speed to support the VSMC joint venture project,” said NXP President and CEO Kurt Sievers. “The VSMC fab perfectly aligns with our hybrid manufacturing strategy and helps ensure we have a manufacturing base which delivers competitive cost, supply control and geographic resilience to support our long-term growth objectives.”
Upon the successful ramp of the initial phase, a second phase will be considered and developed pending commitments by VIS and NXP. The related technology license and technology transfer will be from TSMC, and a Technology License Agreement with TSMC has been signed.
The expected output will be 55,000 300mm wafers per month in 2029 and the joint venture will create approximately 1,500 jobs while contributing to the development of the upstream and downstream supply chains.
VIS, based in Taiwan, has five 200mm fabs in Taiwan and Singapore with a monthly capacity of about 282,000 wafers in 2024.
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