Vanguard International Semiconductor Corporation and NXP Semiconductors N.V. have announced plans to create a manufacturing joint-venture, VisionPower Semiconductor Manufacturing Company Pte Ltd. Moreover, the new JV will build a new 300mm semiconductor wafer manufacturing facility in Singapore.

The joint-venture fab will support 130nm to 40nm mixed-signal, power management and analog products. Specifically, targeting applications in the automotive, industrial, consumer, and mobile end markets. The underlying process technologies will be transferred to the joint venture from TSMC.

Increased 300mm Output

The joint venture will begin construction of the initial phase of the wafer fab in the second half of 2024. Furthermore, the companies aim to have initial production available to customers during 2027.

The joint venture will operate as an independent, commercial foundry supplier. Moreover, providing assured proportional capacity to both equity partners. It will have an expected output of 55,000 300mm wafers per month in 2029.

The joint venture will create approximately 1,500 jobs in Singapore. In addition, upon the successful ramp of the initial phase, the joint venture companies will consider a second phase.

The total cost of the initial build out may reach $7.8 billion. VIS will inject $2.4 billion representing a 60 percent equity position in the joint venture and NXP will inject $1.6 billion for the remaining 40 percent equity position.

VIS and NXP have agreed to contribute an additional $1.9 billion. Accordingly, the additional fund will support the long-term capacity infrastructure. The remaining funding, including loans, will come from third parties to the joint venture. VIS will operate the fab.

Adheres to Business Sustainability

“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.

In addition, Fang said, “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. At the same time, look forward to working with customers, suppliers, local talents, and government to continuously contribute to Singapore and the global semiconductor ecosystem.”

Meanwhile, Kurt Sievers, NXP President and CEO, said NXP continues to take proactive actions to ensure it has a manufacturing base. Particularly, one that provides competitive cost, supply control, and geographic resilience to support its long-term growth objectives. Moreover, Sievers said, “We believe VIS suits 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.”

06 June 2024