NXP Semiconductors and Vanguard to Establish Joint Venture in Singapore

TapTechNews June 5th, NXP Semiconductors announced today its plan to establish a joint venture, VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) with Vanguard International Semiconductor Corporation.

This joint venture will start building a new 300mm wafer fab in Singapore in the second half of 2024 and will obtain the basic process technology through TSMC's authorization, which can support 130nm to 40nm mixed-signal, power management and analog products, mainly targeting the automotive, industrial, consumer and mobile terminal markets.

It is introduced that VSMC will start the construction of the wafer fab (Phase 1) after obtaining all necessary regulatory approvals in the second half of 2024 and start providing the first batch of products to customers in 2027.

The initial total cost of the factory is expected to be 7.8 billion US dollars (TapTechNews note: currently about 56.472 billion Chinese yuan), of which Vanguard International Semiconductor Corporation will invest 2.4 billion US dollars to hold 60% equity, and NXP will invest 1.6 billion US dollars to hold the remaining 40% equity.

The official said that the joint venture will operate as an independent commercial foundry supplier and provide a guaranteed proportional production capacity for both equity partners. It is expected to reach a monthly output of 55,000 300mm wafers by 2029. In addition, the joint venture will create about 1,500 jobs in Singapore. After the first phase starts successfully, both parties will consider and develop the second phase according to the equity commitment.