September 5, 2024 /SemiMedia/ — NXP Semiconductors N.V. and Vanguard International Semiconductor Corporation (VIS) have successfully launched their joint venture, VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC), following the receipt of all necessary regulatory approvals and the completion of capital injection. This milestone paves the way for the development of VSMC’s first 300mm wafer manufacturing facility in Singapore.

“We are grateful for the swift and comprehensive support from government agencies in Taiwan, Singapore, and other jurisdictions,” said Kurt Sievers, President and CEO of NXP. “The VSMC joint venture is a strategic addition to our hybrid manufacturing approach, enhancing our supply chain control, reducing costs, and bolstering geographic resilience. This new fab will significantly strengthen our ability to meet the growing demand across our key markets and support our long-term growth ambitions.”

VIS Chairman Leuh Fang added, “We appreciate the backing of the relevant authorities, which has enabled us to move forward with this important investment. The 300mm fab exemplifies VIS’ strategy to scale our production capabilities and diversify our global operations, while remaining focused on customer satisfaction.”

VSMC will begin construction on its first phase later this year, with initial production targeted for 2027. A second phase will be considered upon successful ramp-up, subject to commitments from both NXP and VIS. The 300mm fab will specialize in manufacturing 130nm to 40nm mixed-signal, power management, and analog products, catering to automotive, industrial, consumer, and mobile markets. A Technology License Agreement with TSMC has been signed, facilitating the transfer of necessary technologies.

The facility is expected to achieve a production capacity of 55,000 300mm wafers per month by 2029, creating around 1,500 jobs and bolstering Singapore’s role in the global semiconductor ecosystem. The joint venture is set to contribute significantly to the development of the upstream and downstream supply chains, enhancing NXP’s manufacturing capabilities and positioning it to better serve its customers worldwide.