Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors have formed a joint venture VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC). Accordingly, the company will proceed with the planned construction of VSMC’s first 300mm wafer manufacturing facility.

VIS and NXP announced on June 5 this year plans to establish the VSMC joint venture in Singapore. Specifically, to build a 300mm wafer fab with a total investment of approximately US$7.8 billion.

VIS Chairman Leuh Fang cited the support of governments such as Taiwan, Singapore, and of other countries to enable them to obtain the necessary regulatory announcements. Accordingly, Fang said, “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.”

Meanwhile, NXP President and CEO Kurt Sievers said the planned fab aligns well with the company’s hybrid manufacturing strategy. Moreover, Sieves said, “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.”

Targets Critical Industries

VSMC will begin construction on its initial phase of the wafer fab in the second half of this year, with initial production slated to begin in 2027. Upon the successful ramp of the initial phase, a second phase will be considered and developed pending commitments by VIS and NXP.

Moreover, the 300mm fab will support 130nm to 40nm mixed-signal, power management and analog products. Specifically, targeting the automotive, industrial, consumer and mobile end markets. The related technology license and technology transfer will be from TSMC, and a Technology License Agreement with TSMC has been signed.

With an expected output of 55,000 300mm wafers per month in 2029, the joint venture will create approximately 1,500 jobs. Furthermore, it will contribute to the development of the upstream and downstream supply chains. Thus, contributing to Singapore and the global semiconductor ecosystem.

VIS is a leading specialty IC foundry service provider. Since its inception in 1994, VIS has been achieving continuous success in its technology development and production efficiency improvement. VIS has also been consistently offering its customers cost-effective solutions and high value-added services. VIS has five 8-inch fabs in Taiwan and Singapore with a monthly capacity of about 282,000 wafers in 2024.

04 September 2024