VIS and NXP Semiconductors build $10.5b semiconductor facility in SG

The facility will create 1,500 jobs in Singapore.

VisionPower Semiconductor Manufacturing Company (VSMC), the joint venture of Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors (NXP), will build a 300mm semiconductor wafer manufacturing facility in Singapore. VIS will operate the facility.

The JV will support 130nm to 40nm mixed-signal, power management, and analogue products, targeting the automotive, industrial, consumer, and mobile end markets.

The JV plans to commence construction of the first phase of the wafer fab in H2 2024, subject to obtaining all required regulatory approvals. Initial production will be available to customers by 2027.

The JV will function as an independent commercial foundry, offering assured proportional capacity to both partners, with an expected output of 55,000 300mm monthly wafers by 2029.

The total cost of the initial build-out is around $10.5b (US$7.8b). VIS will inject $3.2b (US$2.4b), representing a 60% equity position in the JV, whilst NXP will fulfil the remaining 40%, injecting $2.1b ($1.6b).

In addition, the partners have agreed to contribute an additional $2.5b (US$1.9b) to support the long-term capacity infrastructure whilst the remaining funding, including loans, will come from third parties for the JV.