NXP and Vanguard to Construct $8B Analog Wafer Fab in Singapore

VisionPower Semiconductor Manufacturing Company Pte. Ltd. is set to make a significant impact in the semiconductor industry as it announces plans to operate as a foundry specializing in the production of 130nm to 40nm mixed-signal, power management, and analog products. The company will target a diverse range of end markets including automotive, industrial, consumer, and mobile sectors.

Under a strategic partnership, TSMC will provide the underlying process technologies to VisionPower Semiconductor Manufacturing Company Pte. Ltd. This collaboration marks an interesting symmetry, as TSMC itself was initially founded with support from Philips Semiconductors, the predecessor of NXP, which provided TSMC's first CMOS process technology.

The construction of the joint venture fab is scheduled to commence in the second half of 2024, with initial production expected to be available by 2027. Operating as an independent commercial foundry supplier, the fab will offer assured proportional capacity to both equity partners. By 2029, the anticipated output is projected to reach 55,000 300mm wafers per month.

With the establishment of the joint venture, approximately 1,500 new job opportunities will be created in Singapore. Following the successful ramp-up of the initial phase, plans for a second phase will be considered and developed, pending commitments from both equity partners. Vanguard, which already operates a 200mm wafer fab in Singapore, will oversee the operation of the new fab.

The total cost of the first phase of the project is estimated to be US$7.8 billion. VisionPower Semiconductor Manufacturing Company Pte. Ltd. will contribute $2.4 billion for a 60 percent stake in the joint venture, while NXP will invest $1.6 billion for a 40 percent ownership share. Additional funding for the project will be sourced from third parties in the form of loans and other financial arrangements.

"VIS is excited to collaborate with NXP, a leading global semiconductor company, to establish our first 300mm fab," stated VIS chairman Leuh Fang. NXP's CEO, Kurt Sievers, expressed confidence in the partnership, stating, "We believe VIS is well-equipped to navigate the complexities of building and operating a 300mm analog mixed signal fab. The joint venture aligns perfectly with NXP's hybrid manufacturing strategy."