June 6, 2024 /SemiMedia/ -- NXP Semiconductors and Vanguard International Semiconductor Corporation (VIS) announced on June 5 that they plan to jointly establish VisionPower Semiconductor Manufacturing Company (VSMC) in Singapore to build a 12-inch (300mm) wafer fab. The fab will cost approximately US$7.8 billion, with VIS investing US$2.4 billion to hold a 60% stake and NXP investing US$1.6 billion to hold a 40% stake.

NXP and TSMC have pledged to invest a total of USD 1.9 billion in long-term production capacity deposits and royalties, with the remaining funds to be provided by other entities.

VIS mentioned that the joint venture will start building the first wafer fab in the second half of 2024 after obtaining approval from relevant regulatory authorities, and is expected to start mass production in 2027. In 2029, the monthly production capacity of the wafer fab is expected to reach 55,000 12-inch wafers, creating about 1,500 jobs. At the same time, after the first wafer fab is successfully mass-produced, the two parties will consider building a second wafer fab.

It is reported that this wafer fab will adopt 130nm to 40nm technology to produce mixed-signal, power management and analog products to support the needs of terminal markets such as automobiles, industry, consumer electronics and mobile devices. Related technology licensing and technology transfer are expected to come from TSMC.

VSMC's first wafer fab will be operated by VIS.