Vanguard International Semiconductor (VIS) and NXP Semiconductors have joined forces to set up a new joint venture (JV) to build $7.8bn (S$10.5bn) 300 nanometre (nm) semiconductor wafer manufacturing facility in Singapore.  

The JV, named VisionPower Semiconductor Manufacturing Company (VSMC), will focus on technologies ranging from 130nm to 40nm. 

Catering to various markets including automotive and industrial, the plant will manufacture mixed-signal, power management and analogue products. 

The joint venture plans to licence process technologies from Taiwan Semiconductor Manufacturing Company, which is an investor in VIS.  

Construction is expected to start in the latter half of 2024, subject to regulatory approvals, with production commencing in 2027.  

The facility aims to produce 55,000 300mm wafers monthly by 2029, creating around 1,500 jobs in Singapore. 

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VIS will hold a 60% equity share with a $2.4bn investment, while NXP will invest $1.6bn for the remaining 40%.  

An additional $1.9bn will be contributed by both companies to support infrastructure, with further funding from third-party loans. The fabrication (fab) will be operated by VIS. 

VIS chairman Leuh Fang said: “VIS is pleased to work with leading global semiconductor company NXP to build our first 300mm fab. This project aligns with our long-term development strategies, demonstrating VIS’ commitment to meeting customer demands, and diversifying our manufacturing capabilities. 

“Adhering to the vision of business sustainability, this fab will be built adopting the Singapore Green Mark standards and implementing rigorous green manufacturing measures.” 

NXP president and CEO Kurt Sievers said: “NXP continues to take proactive actions to ensure it has a manufacturing base which provides competitive cost, supply control, and geographic resilience to support our long-term growth objectives.  

“We believe VIS is well suited and fully understands the complexities involved in building and operating together with NXP a 300mm analogue mixed signal fab. The joint venture partnership we intend to create with VIS perfectly aligns within NXP’s hybrid manufacturing strategy.” 

This development comes as South Korea recently announced a Won26trn ($19bn) support package for its semiconductor industry.