NXP and VIS Launch VSMC Joint Venture Fab

Vanguard International Semiconductor (VIS) and NXP Semiconductors have officially kicked off their VisionPower joint venture fab in Singapore. The two companies have successfully obtained all the necessary approvals from relevant authorities and have injected capital to establish the VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) joint venture. The next step for the company is to proceed with the planned construction of VSMC’s first 300mm wafer manufacturing facility, which is scheduled to begin later in 2024.

The total investment in the VSMC 300mm fab is set at $7.8 billion, a reduction from the initial estimate of $10 billion when the deal was first announced back in June. The initial production at the facility is expected to focus on power management and analog parts, with operations slated to commence in 2027. The manufacturing will utilize 130nm to 40nm mixed-signal, power management, and analog technologies catering to various industries such as automotive, industrial, consumer, and mobile end markets.

Chairman Leuh Fang expressed gratitude towards the governments and regulatory authorities of Taiwan, Singapore, and other countries for their unwavering support, which has enabled the joint venture to move forward with this significant investment as planned. Fang emphasized that the establishment of VSMC’s first 300mm fab underscores VIS’ dedication to meeting customer demands, expanding manufacturing capacity, and diversifying global manufacturing bases.

NXP President and CEO Kurt Sievers also extended thanks to the relevant government agencies for their swift support of the VSMC joint venture project. Sievers highlighted that the VSMC fab aligns perfectly with NXP's hybrid manufacturing strategy, ensuring a manufacturing base that offers competitive cost, supply control, and geographic resilience to support the company's long-term growth objectives.

Looking ahead, upon the successful ramp-up of the initial phase, VIS and NXP will consider and develop a second phase for the project. The technology license and transfer will be facilitated by TSMC, with a Technology License Agreement already in place. By 2029, the expected output of the joint venture is projected to reach 55,000 300mm wafers per month, creating approximately 1,500 jobs and contributing to the development of both upstream and downstream supply chains.